Markets updateAt 11L42 a.m. ET, the \u2060S&P\/TSX \u200bcomposite index was up 164.77 points, or 0.49 per cent, at 33,038.84.In New York, the Dow \u2060Jones Industrial \u200bAverage rose 139.1 points, or 0.30 per cent, to 47,085.53. The \u2060S&P 500 rose 23.0 points, or 0.34 per cent, \u2060to 6,722.35, \u200bwhile the Nasdaq Composite \u2060rose 83.9 points, or \u200c0.37 per cent, to 22,458.032.The \u200bCanadian dollar \u200bweakened \u200cagainst the greenback , and \u2060the \u200byield on benchmark government debt \u200bslipped. The \u200cloonie was trading 0.1 per cent lower at \u200c$1.3701 \u200bto \u200cthe greenback, \u200bor 72.99 U.S. \u2060cents, after \u2060trading \u200bin a range of $1.3681 to $1.3709. Canadian government 10-year bond \u2060yields fell 2.7 basis points to 3.407 per cent. \u2060Oil prices rose by about 2 per cent, clawing back some of the previous session\u2019s losses as Iranian attacks on the United Arab Emirates rekindled supply fears while the Strait of Hormuz remains \u2060largely shut. Brent crude futures gained 85 US cents, or 0.9 per cent, to US$101.06 a barrel while U.S. West Texas \u2060Intermediate (WTI) crude \u200badvanced 55 US cents to US$94.07.Spot gold was little changed at US$5,016.53 per ounce. U.S. gold futures for April delivery rose 0.4 per cent to US$5,021.10.03\/17\/26 11:43Tech, miners lead gains on TSX; focus on central bank meetings<\/p>\n
Canada\u2019s benchmark index rose on Tuesday with technology stocks and miners leading gains, while investors awaited key central bank decisions \u2060this week \u200bfor clues on the monetary policy outlook in Canada and the U.S. as tensions in the Middle East raged on.<\/p>\n
At 11:42 a.m. ET, the S&P\/TSX composite index up 164.77 points, or 0.49 per cent, at 33,038.84, \u200ba day after clocking its biggest one-day \u200cjump since February 26, before the conflict began.<\/p>\n
The materials sector rose 1.4 per cent and was among the top gainers, as prices of precious metal miners inched higher. Tech stocks gained 2 per cent.<\/p>\n
Oil prices jumped as much as 4 per cent \u200cbefore paring \u200bsome gains, as attacks \u200con energy infrastructure in the Middle East and continued shipping disruptions \u200bthrough the Strait of Hormuz, a key route \u2060for global crude and LNG flows, revived supply concerns.<\/p>\n
Energy stocks \u2060climbed 1.1 per cent and were set to gain for a fifth consecutive session – \u200btheir longest streak since late January. The sub-index touched its highest level since September 2008 in the previous session.<\/p>\n
The spike in oil prices has reignited worries about global inflation, prompting central banks to reassess their policy stance. Canada is seen \u2060as relatively insulated from the latest energy shock as it is a net oil exporter.<\/p>\n
\u201cWe would not expect the Governing Council to signal a material risk for shifting to a tighter policy stance unless there were signs that inflation expectations were rising uncomfortably,\u201d said \u2060Michael Hanson, executive director and senior global economist \u200bat J.P. Morgan.<\/p>\n
– Reuters<\/p>\n
03\/17\/26 11:31Capital Economics downgrades Canadian housing forecast, sees more price declines in coming months<\/p>\n
– Darcy Keith<\/p>\n
Capital Economics has just downgraded its Canadian house price forecast for this year, now predicting another 2% drop over the next three to six months. <\/p>\n
\u201cThose new forecasts imply that prices will fall by 4 per cent this year, matching the decline in 2025,\u2019\u2019 Stephen Brown, the research firm\u2019s deputy chief North America economist, said in a note. \u201cWe expect prices to then stabilize because mortgage costs, based on five-year fixed rates, will be back in line with their 2017-19 level. That seems like a reasonable benchmark given the months\u2019 supply of homes for sale, at 5.0 in February, broadly matches the 5.1 average over that period. That said, the risks are probably still tilted a bit to the downside given the potential for further increases in condo supply.\u201d<\/p>\n
Mr. Brown notes the spike in oil prices this month is likely to be negative for housing due to the impact on mortgage rates. <\/p>\n
\u201cAlthough we are not convinced that the rise in oil prices so far will cause the Bank of Canada to shift to interest rate hikes this year, the fact that money markets have begun to price in that scenario has pushed up government bond yields. That, in turn, could cause five-year fixed mortgage rates to rise from an average of 3.8 per cent recently toward 4 per cent,\u201d he said. <\/p>\n
His forecasts are for the MLS Home Price Index.<\/p>\n
03\/17\/26 11:16Boeing sees profit for commercial airplane division in 2027, later than expectedOpen this photo in gallery:<\/a><\/p>\n Boeing 737 MAX aircraft are assembled at the company\u2019s plant in Renton, Washington, U.S. June 25, 2024.Jennifer Buchanan\/Reuters<\/p>\n Boeing (BA-N<\/a>) expects its commercial airplane division to turn a profit in 2027, not this year \u200bas previously expected \u200cdue to higher-than-expected costs of its purchase of Spirit AeroSystems, Chief Financial Officer Jay Malave said on Tuesday \u200cat \u200bthe Bank \u200cof America Global Industrials Conference \u200bin London.<\/p>\n The commercial airplane division \u2060lost US$632-million in 2025 and US$2.1 -billion in 2024.<\/p>\n The company expects \u200bto increase production of its popular 737 MAX jet from roughly 42 aircraft a month to 47 a month \u2060by year\u2019s end and to deliver about 500 of the jets this year, he said.<\/p>\n The single-aisle jet is critical to \u2060Boeing\u2019s financial recovery.<\/p>\n Deliveries in \u200bthe first quarter were slightly \u2060hampered by damage to wiring on about 25 \u200c737s, but fixing the problems only required \u200ba few days of more work and will not hurt annual deliveries, he said.<\/p>\n – Reuters<\/p>\n 03\/17\/26 10:49Airlines help lift the U.S. stock market, even as oil prices rise again\u00a0Open this photo in gallery:<\/a><\/p>\n Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., March 9.Brendan McDermid\/Reuters<\/p>\n U.S. stocks are rising Tuesday, led by airlines still seeing customers want to fly despite worries about the economy. That\u2019s despite another climb for oil prices because of the war with Iran.<\/p>\n The S&P 500 added 0.7 per cent, coming off its best day since the war began. The Dow Jones Industrial Average was up 352 points, or 0.8 per cent, as of 10 a.m. Eastern time, and the Nasdaq composite was 0.7 per cent higher.<\/p>\n It\u2019s a break, for now at least, from the usual playbook since the start of the war, where stock prices have tended to go in the opposite direction of oil prices. The fear in financial markets has been that a long-term disruption to the global flow of oil because of the war could send prices so high for so long that it damages the global economy.<\/p>\n On Tuesday, the price for a barrel of benchmark U.S. crude rose 1.8 per cent to $95.18. Brent crude, the international standard, climbed 1.4 per cent to $101.63. But they pared even bigger gains from earlier in the morning, and they\u2019re still below where oil prices were at the end of last week.<\/p>\n Delta Air Lines also offered an encouraging signal about the strength of the economy after raising its forecast for revenue for the first three months of 2026. It said it\u2019s seen demand to fly accelerate into March from both businesses and households.<\/p>\n Of course, it\u2019s also having to pay higher prices for jet fuel because of the spike in oil prices. But it said the strong demand for flights could nevertheless allow it to report profit for the start of 2026 that\u2019s in line with its earlier forecast.<\/p>\n Delta\u2019s stock flew 5 per cent higher, and it helped other airline stocks trim their own sharp losses for the year so far. United Airlines climbed 2.8 per cent, and Southwest Airlines rose 3.4 per cent.<\/p>\n American Airlines gained 3.8 per cent after saying it\u2019s also likely to report stronger growth in revenue for the start of this year than it had forecast earlier.<\/p>\n Other areas of the market whose profits are closely tied to the economy\u2019s strength were likewise rising. JPMorgan Chase climbed 1.2 per cent and was one of the strongest forces lifting the S&P 500.<\/p>\n Some beaten-down stocks in the financial industry recovered losses from earlier in the year, including companies swept up in worries about whether software businesses and other industries potentially under threat will pay back all their loans. Blue Owl Capital gained 5 per cent, and Ares Management rose 5.1 per cent.<\/p>\n Another big winner was Uber Technologies, which rose 5.7 per cent after announcing an expansion of its partnership with Nvidia. They plan to launch a fleet of autonomous vehicles using Nvidia\u2019s technology, beginning with Los Angeles and San Francisco in the first half of next year.<\/p>\n The U.S. stock market has a track record of bouncing back relatively quickly from military conflicts in the Middle East and elsewhere, as long as oil prices don\u2019t stay too high for too long. Many professional investors are expecting that to be the case again, which has helped keep U.S. stock prices near their record levels.<\/p>\n For all its dramatic swings over the last couple weeks, including several that struck hour to hour, the S&P 500 is only 3.3 per cent below its all-time high.<\/p>\n That\u2019s even as Treasury yields have climbed on expectations that higher oil prices will keep the Federal Reserve from resuming its cuts to interest rates for a while. Higher yields push downward on prices for stocks and all kinds of investments.<\/p>\n The yield on the 10-year Treasury eased to 4.20 per cent from 4.23 per cent late Monday, but it remains well above the 3.97 per cent level it was at before the war with Iran began.<\/p>\n The Fed will make its next announcement on interest rates Wednesday afternoon, and traders see virtually no chance of a cut, according to data from CME Group.<\/p>\n – The Associated Press<\/p>\n 03\/17\/26 10:47David Rosenberg thinks the BoC may need to cut interest rates back to near zero again<\/p>\n – Darcy Keith<\/p>\n David Rosenberg has been sounding the alarm over Canada\u2019s weak economy for a long time. But now the economist and founder of Rosenberg Research is taking it a step further, suggesting that the Bank of Canada may need to slash interest rates to near zero if it wants to resurrect an economy that\u2019s been flirting with recession over the past year. The bank last did so during the pandemic, when its overnight rate reached 0.25 per cent. <\/p>\n There are many reasons for Canada\u2019s moribund economy, he says, but one key impediment is deteriorating consumer balance sheets. <\/p>\n \u201cThe household debt\/income ratio has risen for five straight quarters, rising to 177.2 per cent in Q4 from 176.3 per cent in Q3 to stand at nearly a two-year high. Not to mention far above the 140-per-cent norm of the past 35 years. This is why the Bank of Canada has been pushing on the proverbial string. Because the debt binge has impaired the interest rate relief delivered by the central bank since the easing cycle commenced in the spring of 2024,\u201d he said in his Breakfast With Dave newsletter today.<\/p>\n He says the bank\u2019s rate cuts so far this cycle of 275 basis points \u201chas bumped against this stubbornly high debt burden, and as a result, to this day, nearly 15 per cent of Canadian personal disposable incomes are being siphoned off into debt-service payments. That share has not come down since the fourth quarter of 2022, when the BoC was in full-fledged tightening mode and interest rates were far higher than they are today. In fact, the power of compound interest on the mountain of debt has meant that the debt-servicing burden today on the consumer is more onerous than it was back in 1990 when John Crow was holding interest rates in double-digit terrain.\u201d<\/p>\n He also points out that the 2.25-per-cent Bank of Canada policy rate masks a much higher interest rate households are actually paying – an average of 4.8 per cent. \u201cThat is a huge imbalance that weighs against a spending cycle,\u201d Rosenberg says. The real interest rate households have been paying since the easing cycle began has only come down 50 basis points, he says. <\/p>\n Rosenberg thinks that the debt burden itself has sparked a major erosion in consumer credit quality, given that the share of Canadian households that are at least 60 days behind on their debt payments has hit a seven-year high of 2.1 per cent and is above the 2020 pandemic level peak. The contraction in employment, as demonstrated by last Friday\u2019s very weak employment report for February, is aggravating the situation, he says. <\/p>\n \u201cUnless Canadians embark on a belt-tightening program of their own, which of course would be a deflationary development, the Bank of Canada is going to have to end up cutting rates aggressively, over and above what it has already done. That may again mean a retest of the zero bound before this easing cycle fully plays out,\u201d he said. <\/p>\n 03\/17\/26 09:53OpenAI to sell AI to U.S. agencies through Amazon cloud unit<\/p>\n OpenAI \u200bhas signed a new deal \u200cto sell access to its AI models to U.S. defense and government agencies through Amazon\u2019s (AMZN-Q<\/a>) cloud unit for classified \u2060and unclassified \u200bwork, the ChatGPT maker said on Tuesday.<\/p>\n The contract enables OpenAI to support the Pentagon under a deal it secured late last month, after \u200bthe agency dropped its previous AI \u200cprovider, Anthropic.<\/p>\n Anthropic, which won a Pentagon contract worth up to US$200-million in July 2025, had been a key U.S. defence AI supplier, working with Palantir and Amazon Web \u200cServices (AWS) to deploy \u200bits Claude models \u200cin classified military and intelligence systems.<\/p>\n But its relationship \u200bwith the Pentagon collapsed in February after \u2060Anthropic refused to allow unrestricted military \u2060use of its AI, particularly for domestic surveillance and autonomous weapons. \u200bFollowing which, the Pentagon labeled it a \u201csupply chain risk\u201d and effectively cut it off from government work.<\/p>\n OpenAI, which had previously focused on unclassified government use, has now secured a Pentagon \u2060contract to provide its models for classified operations.<\/p>\n Its partnership with AWS builds on this latest shift, reflecting how access to government and defense contracts, especially via cloud providers already embedded in federal systems, is becoming \u2060a key battleground.<\/p>\n – Reuters<\/p>\n 03\/17\/26 09:46Chipmaker Qualcomm unveils US$20-billion stock buyback programOpen this photo in gallery:<\/a><\/p>\n A Qualcomm sign is shown outside one of the company’s many buildings in San Diego, Cal., on Sept. 17, 2020.Mike Blake\/Reuters<\/p>\n Smartphone chip \u2060designer \u200bQualcomm (QCOM-Q<\/a>) on Tuesday unveiled a US$20-billion stock buyback program, \u200bin \u200caddition to its existing US$2.1-billion share repurchase authority.<\/p>\n Shares of \u200cthe \u200bcompany \u200crose more \u200bthan 2.5 per cent in early trading.<\/p>\n Qualcomm is \u2060also increasing \u200bits quarterly cash dividend by over 3 per cent, to 92 US cents per \u2060share from 89 US cents, the company said.<\/p>\n \u201cWe remain \u2060focused on \u200bstockholder returns and \u2060executing on our ongoing \u200cdiversification opportunities,\u201d CEO Cristiano \u200bAmon said.<\/p>\n – Reuters<\/p>\n 03\/17\/26 09:37TSX edges up in broad gains; investors await central bank decisions<\/p>\n Canada\u2019s benchmark \u200cindex opened higher \u2060on \u200bTuesday on gains across sectors, with \u200bminers \u200cand financials in the \u200clead, \u200bwhile \u200cinvestors awaited \u200bkey central bank \u2060decisions \u2060for \u200bclues on monetary policy outlook in Canada and the \u2060U.S.<\/p>\n At 9:32 a.m. ET, the \u2060S&P\/TSX \u200bcomposite index \u2060was up \u200c0.8 per cent at 33,130.48 points<\/p>\n Wall \u200bStreet\u2019s main \u200cindexes opened higher on Tuesday with financial \u2060stocks \u200bin the lead, while investors weighed the impact \u200bof the \u200cMiddle East conflict on energy costs, putting inflation risks \u200cback \u200bin focus \u200cahead of \u200bthe Federal Reserve\u2019s two-day \u2060meeting.<\/p>\n The Dow \u2060Jones Industrial \u200bAverage rose 139.1 points, or 0.30 per cent, to 47,085.53. The \u2060S&P 500 rose 23.0 points, or 0.34 per cent, \u2060to 6,722.35, \u200bwhile the Nasdaq Composite \u2060rose 83.9 points, or \u200c0.37 per cent, to 22,458.032.<\/p>\n – Reuters<\/p>\n 03\/17\/26 08:26Top picks in promising electrical power equipment sector<\/p>\n – Scott Barlow<\/p>\n Citi analyst Pierre Lau surveyed the global electrical equipment sector, one with an enviable array of growth drivers,<\/p>\n \u201cWe are positive on the global power transformer industry expecting prolonged shortage with annual supply below annual demand in 2026-28E. Supply was a 30-per-cent deficit of demand in 2025. Cumulative shortage would increase 1.4 times from 708 GVA in 2025 to the peak of 1,699 GVA in 2028E, which would be 47 per cent of the annual supply constraint by production capacity and skilled labor, conducive to boost market price rises. We calculate global production capacity to up 53 per cent in 2025-28E and assume demand to 7.3-per-cent CAGR [compound annual growth rate] in 2025-30E which might have upside from Citi\u2019s more ambitious U.S. hyper-scaler assumptions recently. Our Buy-rated global top pick transformer makers are Hitachi from Japan, Hyosung Heavy from Korea as well as Sieyuan and TBEA both from China; we also like the strong fundamentals of Siemens Energy in Europe and GE Vernova in the U.S. but rate them Neutral due to above sector average PERs\u201d<\/p>\n 03\/17\/26 08:25Copper stocks more attractive after selling <\/p>\n – Scott Barlow<\/p>\n RBC Capital Markets analyst Sam Crittenden sees copper mining stocks as attractive after a brief sell-off,<\/p>\n \u201cCopper prices held steady last week at $5.79\/lb amid modestly rising inventories which grew by 2.4 per cent to 1.3Mt driven by additions to LME inventories. Meanwhile, copper equities shed 4.5 per cent week-over-week as gold prices fell (down 2.9 per cent w\/w), the U.S. Dollar strengthened (up 1.5 per cent w\/w), alongside the broader S&P 500 which fell 1.6 per cent w\/w. Copper equities are now down down 0.3 per cent year-to-date as valuations have eased; however, the fundamentals for copper remain strong, in our view, and the stocks are now trading at an 11-per-cent FCF yield for 2026, and growing to 17 per cent in 2027\u2026 The Chinese import premium rose 13 per cent to $45\/mt, signaling tightness in the Chinese concentrate market \u2026 We continue to see Lundin as having the strongest leverage to gold prices due to the vast quantities in resource at Vicu\u00f1a where we project a revenue breakdown of 46-per-cent gold, 42-per-cent copper, and 12-per-cent silver at spot prices. Meanwhile, Hudbay and Freeport also have moderate gold exposures, while Capstone and First Quantum are the most levered to copper\u201d<\/p>\n Mr. Crittenden has \u201coutperform ratings\u201d on Capstone Mining (CS-T<\/a>), Hubby Minerals (HBM-T<\/a>), First Quantum (with a \u2018speculative\u2019 qualifier) (FM-T<\/a>), and Ivanhoe (also speculative) (IVN-T<\/a>). <\/p>\n 03\/17\/26 08:13Fund managers rapidly switch to bears<\/p>\n – Scott Barlow<\/p>\n Open this photo in gallery:<\/a><\/p>\n A Bank of America customer uses an ATM machine at a branch in Greenville, South Carolina January 18, 2012.Chris Keane\/Reuters<\/p>\n BofA Securities monthly fund manager survey (FMS) is complete and summarized by investment strategist Michael Hartnett,<\/p>\n \u201cMarch FMS turns bearish as Iran & private credit concerns end \u2018frothy bull\u2019 sentiment of recent months; growth optimism tanks and cash levels surge to 4.2 per cent (contrarian FMS cash \u2018sell signal\u2019 over), FMS bearish enough to sell oil more than $100\/bbl, sell DXY [U.S. trade weighted dollar index] >100 \u2026 buy SPX 6600; that said, BofA positioning metrics far from uber-bear levels seen at recent big lows\/good entry points for stocks & credit. On Macro: global growth optimism slumps to net 7 per cent from 39 per cent, inflation expectations jump to net 45 per cent from 9 per cent, rate cut optimism lowest since Feb\u201923; but no one pricing in recession \u2026 On Risk: geopolitics & inflation replace AI bubble as biggest tail risks, and 63 per cent say private equity\/credit most likely source of systemic credit event; most crowded FMS trades = long gold & long global semis; most likely result for US midterms = DEM House\/GOP Senate (54 per cent), but investor probability of DEM sweep (28 per cent) on the rise.<\/p>\n \u201cOn Asset Allocation: March rotation from \u201cboom\u201d (e.g., banks) to \u2018stagflation\u2019 (e.g., staples); more broadly, US$ short-covering has been modest, investors are long commodities (most since Apr\u201922), and retain big OW in equities, especially EM (most since Feb\u201921), Japan (most since May\u201924), banks, industrials, in sharp contrast to a big short in consumer discretionary stocks (most UW since Dec\u201922).”<\/p>\n 03\/17\/26 07:03Delta Air sticks to first-quarter profit forecast, raises revenue expectations<\/p>\n Delta \u200bAir (DAL-N<\/a>) said on Tuesday it \u200cexpects first-quarter profit within its initial forecast range but raised its revenue expectations, \u2060amid high \u200bjet fuel prices due to the conflict in the Middle East.<\/p>\n The carrier said consumer and corporate demand trends \u200bhave improved into March \u200cwith strength across its main, premium and loyalty revenues.<\/p>\n Shares of the carrier were up 3.55 per cent in premarket trading.<\/p>\n Delta now expects first-quarter \u200crevenue \u200bto grow \u200cat a high- single-digit percentage, compared with \u200bits earlier forecast of 5 per cent to \u20607 per cent.<\/p>\n The company had forecast adjusted \u2060profit per share in the range of \u200b50 US cents to 90 US cents.<\/p>\n Delta said it was well-positioned to navigate the current environment and was ready to tweak its capacity if fuel \u2060prices stay elevated.<\/p>\n Jet fuel prices have jumped more than 50 per cent since U.S. and Israeli strikes on Iran in late February, with Iranian strikes across the major \u2060oil-producing region disrupting supplies \u200band shutting key shipping routes.<\/p>\n – Reuters<\/p>\n 03\/17\/26 06:51Bank of Montreal to open over 130 new California locationsOpen this photo in gallery:<\/a><\/p>\n The BMO office tower is shown in Toronto’s financial district in Toronto on Tuesday, April 5, 2016.Nathan Denette\/The Canadian Press<\/p>\n Bank \u200bof Montreal (BMO-T<\/a>) said on Tuesday it plans to \u200bopen more than 130 \u200cfinancial centres in California and about 15 in Arizona over the next five years, as it looks to expand presence \u2060in the \u200bU.S. West following the sale of several branches across the nation last year.<\/p>\n BMO, the third-largest Canadian bank by market value, said in October it would sell \u200b138 branches to First Citizens \u200cBank, and reinvest in markets with stronger client engagement and longer-term growth prospects.<\/p>\n As part of its growth strategy, the bank said it would open 150 new branches over the next \u200cfive years, \u200bwith a focus \u200con U.S. markets, largely California-centric. Some of the biggest U.S. \u200bbanks have invested in building branches in \u2060affluent areas to attract more clients, earn consumer \u2060trust and provide higher-value services such as mortgages and wealth \u200bmanagement.<\/p>\n In 2023, Bank of Montreal acquired BNP Paribas\u2019 U.S. unit, Bank of the West, for $16.3-billion, in its biggest deal ever, to gain access to nearly 2 million customers, about 500 retail branches, \u2060and commercial and wealth offices across the Midwest and Western United States.<\/p>\n The bank plans to open three new financial centres in Greater Los Angeles, two in the Bay Area and another two in San Diego in \u20602026. The expansion will create \u200bhundreds of jobs and will expand access to in-person and \u2060advice-led banking, the lender said.<\/p>\n Shares of BMO have gained a little over 7 per cent so far in 2026, outperforming its larger peer, Royal Bank of \u200bCanada (RY-T<\/a>).<\/p>\n – Reuters<\/p>\n 03\/17\/26 06:48Market mood bearish, but less so than in April\u2019s tariff shock, BofA survey finds<\/p>\n Investor \u200bsentiment turned bearish \u200bin March \u200cdue to the war in Iran and \u2060concern \u200bover private credit, BofA\u2019s monthly fund manager survey found, \u200bbut sentiment \u200cremains well above the levels during April 2025\u2019s tariff turmoil. <\/p>\n Just \u200c7 per cent \u200bof \u200cthose surveyed \u200bexpect a stronger global \u2060economy, down from \u206039 per cent a month \u200bearlier, while a net 45 per cent expect higher global CPI in the next \u206012 months, up from 9 per cent. <\/p>\n However, while that caused BofA\u2019s broadest \u2060measure of investor sentiment \u200bto fall \u2060sharply to 5.6 from 8.2, \u200cthis is still well above \u200bApril 2025\u2019s low of 1.8.<\/p>\n – Reuters<\/p>\n 03\/17\/26 06:24Honeywell expects hit to Q1 from Middle East conflict; maintains 2026 forecast<\/p>\n Honeywell International (HON-Q<\/a>) \u200csaid the Middle East conflict could hit the company\u2019s first-quarter revenue by a high-single-digit \u2060percentage, \u200ban early sign of how the Iran war may impact corporate earnings beyond the aviation and energy industries.<\/p>\n However, \u200bthe industrial giant \u200cremains confident in its 2026 forecast, viewing the disruptions as a \u201ctactical issue\u201d rather than demand-driven, CEO Vimal Kapur said at \u200cBofA Securities\u2019 Global \u200bIndustrials Conference \u200con Tuesday.<\/p>\n The U.S.-Israeli war with \u200bIran is rattling businesses worldwide, \u2060driving up energy prices – in \u2060turn pushing up costs and threatening margins – \u200bwhile squeezing supplies of critical raw materials and raising questions about the reliability of trade routes critical to the flow of goods \u2060from food to car parts.<\/p>\n \u201cIf something due in March shows up in April or May, it still won\u2019t change our guide for the \u2060year or for that \u200bmatter, the next year,\u201d Kapur said.<\/p>\n Honeywell expects \u20602026 sales of between US$38.8-billion and US$39.8-billion \u200cand a full-year adjusted profit per share \u200bof US$10.35 to US$10.65.<\/p>\n The company\u2019s shares have fallen about 3.7 per cent since the conflict began more than two weeks \u200bago.<\/p>\n – Reuters<\/p>\n 03\/17\/26 05:52Wall Street futures point to a lower open with Fed meeting set to kick offOpen this photo in gallery:<\/a><\/p>\n Traders work on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York on March 16.TIMOTHY A. CLARY\/AFP\/Getty Images<\/p>\n U.S. stock index futures slipped on Tuesday as the Middle East conflict pinned oil prices near US$100 a barrel, fueling inflation concerns that will be a major point of discussion when the Federal Reserve kicks off its two-day meeting later in \u2060the day.<\/p>\n Wall \u200bStreet was also cooling from a tech-driven rebound in the previous session that saw the benchmark S&P 500 log its biggest one-day jump in over a month, which also featured Nvidia\u2019s extensively watched annual developer conference.<\/p>\n Nvidia said the revenue opportunity for its artificial intelligence chips may reach at least US$1-trillion through 2027, as the \u200bcompany outlined a strategy to compete more aggressively in the fast-growing market \u200cfor running AI systems in real time.<\/p>\n Shares of the company were flat in premarket trading after Monday\u2019s 1.6-per-cent rise, while peers Advanced Micro Devices and Broadcom were marginally lower.<\/p>\n Investors are now drawn to the expanding conflict in the Middle East that is likely to keep the Strait of Hormuz shut, as U.S. President Donald Trump\u2019s call to allies to safeguard \u200cthe passage fell \u200bon deaf ears.<\/p>\n Travel stocks Delta and \u200cCarnival were down 1 per cent, while energy companies Occidental and EQT were up about 1 per cent each.<\/p>\n Brokerages lifted their outlooks \u200bfor energy prices that is likely to dampen economic growth, which \u2060was also flagged by the Australian central bank when it hiked interest rates earlier in the \u2060day.<\/p>\n The U.S. Fed is likely to leave borrowing costs unchanged at the end of its two-day meeting on Wednesday.<\/p>\n But investors are pricing \u200bin a hawkish outlook as short-term Treasury yields edge up and rate futures suggest one 25-basis-point cut towards the end of the year, according to LSEG-compiled data, down from around two before the war.<\/p>\n \u201cWhile we do not expect central banks to make knee-jerk policy moves, policymakers are likely to stress vigilance over inflation risks amid elevated oil prices and uncertainty over the length of \u2060the war,\u201d said analysts at UBS on central bank decisions globally this week.<\/p>\n \u201cComments that are more hawkish than expected could inject further volatility into a market that is vulnerable to shifts in sentiment.\u201d<\/p>\n At 5:11 a.m. ET, Dow E-minis were down 104 points, or 0.22 per cent, S&P 500 E-minis were down 20 points, or 0.30 per cent. Nasdaq 100 E-minis were down 95.25 points, or 0.39 per cent.<\/p>\n Futures tracking the rate-sensitive Russell 2000 index lost 0.7 per cent, while Wall \u2060Street\u2019s fear gauge, the CBOE volatility index edged up 0.57 points \u200bto 24.06.<\/p>\n Despite the global turmoil in markets due to the war, U.S. stocks have held up better than those \u2060in Europe and Asia on expectations that the repercussions on the economy will be less severe.<\/p>\n However, analysts and Goldman Sachs\u2019 CEO David Solomon have underscored \u200cthat investors are yet to fully consider the effects of the war on the global economy.<\/p>\n The conflict has also \u200bdelayed a planned summit between U.S. and China\u2019s leaders on Trump\u2019s request, casting a shadow over mutual ties that have been stable since their last meeting in October.<\/p>\n – Reuters<\/p>\n 03\/17\/26 05:23Before the Bell: What every Canadian investor needs to know today<\/p>\n – S.R. Slobodian<\/p>\n Global markets were mixed in cautious trading \u200cas investors assessed the economic damage from a prolonged Middle East \u2060conflict while central bank interest rate decisions loom.<\/p>\n Wall Street futures were in the red after major North American markets closed higher yesterday.<\/p>\n TSX futures followed sentiment lower.<\/p>\n In Canada, investors are getting results from Alimentation Couche-Tard Inc. and Lululemon Athletica Inc.<\/p>\n The Federal Open Market Committee \u201cis likely to defer action until it becomes clear whether the output or price effects are dominant,\u201d said Steve Englander, global head of G10 FX research at \u2060Standard Chartered.<\/p>\n \u201cWe would be surprised if the FOMC \u200bindicated a strong direction on the impact of the war, as it has no way of knowing how long the war will \u2060last or whether the biggest response will be on activity or inflation.\u201d<\/p>\n Overseas, the pan-European STOXX 600 was up 0.18 per cent in morning trading. Britain\u2019s FTSE 100 rose 0.35 per cent, Germany\u2019s DAX edged down 0.08 per cent and France\u2019s CAC 40 advanced 0.3 per cent.<\/p>\n In Asia, Japan\u2019s Nikkei closed 0.09 per cent lower, while Hong Kong\u2019s Hang Seng climbed 0.13 per cent.<\/p>\n Read more: Here<\/a><\/p>\n