European markets boost Canadian shares

What happened: Canadian markets surged on Friday, with materials, technology, utilities, and energy sectors leading the rally. This bullish trend was supported by optimism surrounding upcoming U.S.-China trade talks. Earlier in the week, markets edged higher on Tuesday as investors awaited the outcome of the U.S. ultimatum to Iran, which expired later that day.

Market impact: The S&P/TSX Composite Index traded higher, boosted by gains in resource-heavy sectors. Specific companies driving this trend include materials giants like Barrick Gold and Teck Resources, tech stocks such as Shopify and CGI Group, and energy firms like Enbridge and Suncor Energy.

What to watch next: Investors should monitor the progress of U.S.-China trade negotiations, with any positive developments potentially driving further gains in Canadian markets. Additionally, upcoming earnings reports from key Canadian companies, such as Shopify on May 28, will provide insights into corporate performance and guidance. Lastly, the next release of Canadian GDP data on May 30 will offer a snapshot of the domestic economy's health.