Canadian stock index edges lower as oil prices hover at low levels, awaiting guidance from the Federal Reserve decision

⑴ Futures tracking the Canadian S&P/TSX Composite Index edged lower on Wednesday as the market awaits more details on the US-Iran peace agreement and further signals regarding the outlook for Federal Reserve monetary policy. ⑵ Trump stated that the memorandum of understanding with Iran is not a final agreement, but oil prices remain near three-month lows due to expectations that passage through the Strait of Hormuz will resume, while the International Energy Agency warned of a supply surplus next year. ⑶ Canadian government bond yields dipped slightly as concerns over inflation driven by energy eased, providing some support for the banking sector and the index as a whole. ⑷ Investors are awaiting Federal Reserve’s new Chair Walsh’s first policy decision, with the general consensus that interest rates will remain unchanged. The wording of the decision and economic forecasts will be the market's focal points for risk appetite.