Canadian Equities Face Headwinds as Commodity Rout Hurting Market Quotes

Asian and European markets delivered mixed signals overnight, setting a cautious tone for Bay Street's Thursday session. While easing geopolitical tensions and breakthrough developments in Canada-China trade negotiations could provide support, surging commodity price declines are posing significant challenges to the region's key sectors.

**Commodity Pressure Weighing on Sentiment**

The sharp selloff in raw materials is hurting quotes across energy and materials stocks. West Texas Intermediate Crude oil futures tumbled $2.68, representing a 4.32% drop to $59.34 per barrel. Precious metals also faced selling pressure, with Gold futures declining $19.70 or 0.42% to settle at $4,616.00 an ounce. Silver futures fell even more sharply, losing $1.070 or 1.17% to $90.315 an ounce. These declines suggest investors are reassessing risk appetite.

**Tech Strength Could Offset Commodity Drag**

Technology stocks may provide a counterbalance, buoyed by TSMC's robust quarterly earnings announcement. The chipmaker's strong performance could help the broader sector advance, though gains may remain capped by broader commodity headwinds hurting equities.

**Key Economic Data on Tap**

Canada will release manufacturing sales and wholesale sales figures for November at 8:30 AM ET. Simultaneously, U.S. economic updates—including import price data, jobless claims, and the Empire State manufacturing index—will hit the wires, potentially influencing investor sentiment throughout the session.

**Yesterday's Modest Performance**

The S&P/TSX Composite Index closed Wednesday with minimal gains, rising 46.11 points or 0.14% to 32,916.47, as traders weighed U.S.-Iran tensions and benefited from a fifth consecutive day of crude oil gains that lifted energy stocks.

Bay Street enters the session with mixed momentum as commodity weakness continues hurting quotes and offsetting tailwinds from improved trade relations and selective tech strength.