Bay Street Likely To Open On Weak Note

(RTTNews) - Bay Street looks headed for a weak start on Tuesday amid rising tensions in the Middle East and fading hopes of U.S. and Iran arriving at a lasting peace deal anytime soon.

Oil prices climbed higher after a cargo vessel was reportedly struck by an unknown projectile in the Strait of Hormuz early on Tuesday local time.

The United Kingdom Maritime Trade Operations (UKMTO), a Royal Navy-sponsored organization, said on Tuesday that it had received a report of an incident in the Strait of Hormuz.

U.S. President Donald Trump said that he is not interested in renewing the expiring ceasefire agreement with Iran and threatened to bomb Oman if it "gets in the way" of a deal with Iran on the Strait of Hormuz.

Meanwhile, Iran has warned that it is preparing to shift to a "fully offensive" military posture.

On the economic front, data released by Canada Mortgage and Housing Corporation showed Canada's housing starts fell 5% in July to a seasonally adjusted annual rate of 229,074 units, down from 240,773 in June.

Canadian stocks ended modestly lower on Monday after fluctuating over the course of the trading session. The benchmark S&P/TSX Composite Index ended down 62.35 points or 0.2% at 36,667.92.

Asian stocks ended broadly lower on Tuesday as high oil prices and rising bond yields amid fading prospects of a lasting U.S.-Iran peace deal rendered the mood a bit bearish.

European stocks are turning in a mixed performance in cautious trade with investors assessing the situation in the Middle East and awaiting fresh data for directional clues.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.51 or 0.6% at 85.01 a barrel.

Gold futures are down $21.00 or 0.47% at $4,452.70 an ounce, while Silver futures are down $0.976 or 1.47% at $65.255 an ounce.