BMO Chief FX Strategist Mark McCormick said a stronger U.S. economy and expectations that the Federal Reserve could raise rates as early as September, or even July, are lifting the U.S. dollar and weighing on the Canadian dollar. He added that as central banks scale back forward guidance, markets are becoming more data-dependent, reinforcing demand for the greenback. McCormick said the loonie could slide to around 69 U.S. cents, according to BNN Bloomberg.

Canada’s S&P/TSX composite index fell 148.11 points to 34,779.27 in early trading, pressured by a sharp drop in oil prices. The August crude oil contract slid US$3.46 to US$69.75 per barrel after progress in U.S.-Iran talks toward a permanent end to their war and rising traffic through the Strait of Hormuz eased supply-disruption concerns. Energy and base metal shares were among the laggards, while gold and the three main U.S. stock indexes moved higher, indicating a shift toward risk assets.

U.S. rare earths and uranium producer Energy Fuels has agreed to acquire Germany’s century-old magnet maker Vacuumschmelze (VAC) in a US$1.9 billion cash-and-stock transaction. After the deal closes, private equity firm Ara Partners is expected to hold about a 20 per cent stake and gain a board seat. Energy Fuels said it plans to keep the VAC brand and its global plants, including a site in China, while expanding a newer facility in South Carolina.

美伊在瑞士举行和平会谈，霍尔木兹海峡航运恢复，伊朗石油出口回升，导致油价快速回落至70美元/桶附近。UBS分析师指出，油价下行叠加住房成本下降和关税传导有限，可能压低通胀预期，缓解美联储鹰派压力。半导体板块受AI增长持续性关注，即将公布的行业财报成短期关键催化剂。医疗保健板块因AI应用、GLP-1药物拓展及并购活跃被点评为结构性机会。

Statistics Canada is set to release May CPI data on Monday, and economists widely expect the annual inflation rate to rise to 3% as gasoline prices increased in May. Oil prices have since retreated from recent highs after the U.S. and Iran signed a memorandum of understanding aimed at ending the war and reopening the Strait of Hormuz to tanker traffic. April’s core CPI excluding gasoline rose just 2%, suggesting inflation has not broadly spread. The Bank of Canada has kept its policy rate at 2.25% and says it will not allow higher energy prices to become persistent inflation.

Panama’s environment ministry said it has received the final environmental audit report for the Cobre Panama copper mine operated by Canada’s First Quantum Minerals. The report identified issues involving administrative matters, biodiversity, ecological restoration and the coordination of environmental monitoring. It said the mine’s overall compliance rate was close to 88%.

Analysts say easing tensions in the Middle East could weigh on energy stocks overall, but disruptions to Qatar’s LNG export capacity and a perceived safety premium for North American LNG may continue to support exporters such as Cheniere. Damage to Middle East refineries has also tightened supplies of refined products and widened crack spreads, a backdrop that could bolster refiners including Marathon Petroleum. Energy Transfer may benefit from rising North American natural gas demand for power generation, including AI-related electricity needs, and from LNG-related transport flows.

Portia Capital President Michelle Connell said the global buildout of AI data centres is expected to run through 2030, with total spending potentially reaching $8 trillion–$10 trillion. She said that multiyear demand should directly benefit semiconductor and hardware suppliers, and named Broadcom, Taiwan Semiconductor and Dell as preferred picks. The article did not cite specific trading catalysts for other assets such as Oil, Lead, Amazon or SpaceX, and referenced SpaceX only as an overvaluation caution case.

Expectations around a temporary U.S.-Iran agreement have raised hopes the Strait of Hormuz could reopen, sending Brent down to $79.05 a barrel and WTI to $76.02. The Nasdaq fell 1.2% on renewed worries about an AI bubble, with Nvidia down 2.4%, Broadcom down 4.4% and Micron down 6.2%. With the Federal Reserve’s policy meeting approaching, markets largely expect interest rates to be kept unchanged.