Canadian Markets Anticipate Gap Down Amid U.S. Iran Tensions

Canadian shares are poised for a gap down opening on Thursday as renewed concerns about inflation and economic growth take center stage. This follows a sharp rise in oil prices after U.S. President Donald Trump announced that U.S. forces will strike Iran 'extremely hard' in the next two to three weeks. Trump did not specify a timeline for ending the conflict and offered no plan to reopen the Strait of Hormuz, but pledged further strikes on energy facilities if Tehran rejects a deal. The Bank of Nova Scotia (BNS.TO) has received approval to repurchase up to 15 million common shares under a new normal course issuer bid, representing approximately 1.2% of its outstanding shares as of March 24. Meanwhile, CGI Inc. (GIB-A.TO) has entered into a multi-year strategic collaboration agreement with Amazon Web Services to advance artificial intelligence adoption and strengthen cloud security in the U.S. public sector. The Canadian market closed on a firm note on Wednesday, reacting positively to Trump's earlier message that U.S. forces would withdraw from the Middle East in two to three weeks. The S&P/TSX Composite Index rose by 189.91 points, or 0.58%, to 32,957.95, with nine of the 11 sectors posting gains. However, Asian and European markets have tumbled as hopes for a resolution to the Middle East conflict have faded. In commodities trading, West Texas Intermediate Crude oil futures have climbed $10.16, or 10.1%, to $110.28 a barrel. Gold futures have fallen $186.00, or 3.9%, to $4,627.10 an ounce, while Silver futures have dropped $5.518, or 7.28%, to $70.560 an ounce. The energy and defense sectors are particularly vulnerable to the geopolitical tensions, with potential impacts on oil prices and military contracts.