Canadian shares positive start due to global cues

What happened: Canadian markets opened positively on Thursday, with the S&P/TSX Composite Index closing at 33,981.82, up 1.24%. This was driven by global cues, namely hopes of an Iran-US agreement reopening the Strait of Hormuz, which eased energy sell-offs and brought Brent Crude futures below $100 per barrel. Additionally, investors reacted to the U.S.-U.K. trade deal agreement and awaited corporate earnings and the Bank of England's interest rate move.

Market impact: Energy stocks led the rally, with Cenovus Energy among the gainers. The positive sentiment also spilled over to other sectors, with the TSX's broad-based gains indicating a risk-on environment. The Bank of Canada's expected quarter-point interest rate cut also contributed to the positive bias, although the central bank's statement on the outlook will be crucial for future market direction.

What to watch next: Investors should closely monitor the Bank of Canada's interest rate decision and statement on Wednesday, which could provide insights into the central bank's monetary policy stance. Additionally, upcoming corporate earnings announcements, particularly from energy and financial sectors, will be key to maintaining the positive momentum. Technical levels around the 34,000 mark on the TSX Composite Index will also be important to watch.