Stocks are easing from recent highs as uncertainty around Middle East peace talks persists, following a strong rally driven by earnings and gains in chipmakers. Investors are increasingly shifting focus back to corporate performance despite ongoing geopolitical risks.
BNN Bloomberg spoke with Christine Tan, portfolio manager at SLGI Asset Management, who said markets are showing resilience through sector rotation and earnings strength, while noting energy price volatility is shaping regional economic impacts and investor positioning.
Key Takeaways
- Markets remain near record highs as investors shift focus from geopolitical headlines to earnings and corporate fundamentals.
- Oil price volatility tied to Middle East tensions continues to influence sentiment, though not all prior highs have been revisited.
- Canada’s role as an energy exporter provides some economic support, but regional impacts vary between producers and importers.
- Investors are repositioning tactically, including shifts toward U.S. equities and away from regions more exposed to energy shocks.
- Supply disruptions and shortages in energy products could create uneven global impacts depending on access, not just price.
Read the full transcript below:
ANDREW: U.S. stocks, of course, have been hitting record highs over the past week. It looks like we’re going to get a pullback today, though, with peace talks in the Middle East apparently in limbo. The S&P has had a pretty good month, up around nine per cent. Earnings have stayed strong, and there’s been a consistent advance in chipmakers. Let’s get more from Christine Tan, portfolio manager at SLGI Asset Management. Christine, great to see you. Thanks very much indeed.
CHRISTINE: Great to see you, Andy.
ANDREW: Still no resolution, it appears, in the Strait of Hormuz, with Iran and the Americans either harassing or boarding ships.
CHRISTINE: Yeah, we continue to wait for a resolution or further indications that the two parties are getting closer together. I think there has been fairly good communication from both sides as to where the sticking points are, and a couple of those key points are still quite far apart. But for now, I think we’re heading into earnings season more so in the U.S. Canada is a little bit behind in terms of when our earnings season will begin, but the focus is back again on the micro versus the macro. Certainly, at least for this morning, you are seeing a little bit of volatility as we wait for more positive developments out of the Middle East.
ANDREW: Do you reckon that one reason investors are basically optimistic, bidding equities to record highs or near there, is that they feel this war is unpopular with the U.S. public and that the White House would like to resolve it in the near term?
CHRISTINE: It does seem like, at least from what we see and hear, that this is an administration that would like to find an end point. I think they had clear objectives in mind that they wanted to achieve. In an ideal world, they would like to get there, finalize a ceasefire and perhaps form a longer-term agreement, particularly around uranium.
ANDREW: But still, apparently, in large measure, the Iranian nuclear program is intact. It’s not clear whether President Trump has achieved his stated goals of halting that program.
CHRISTINE: Yeah, it remains unclear as to where the status of that program really is. You’re right.
ANDREW: Canada — you think, obviously the world economy is being shaken to some extent by the surge in energy prices. It’s not great for us here in central Canada. We bring in oil at global prices or close to it, but is it an economic shock absorber for Canada, though, a higher oil price?
CHRISTINE: In a way it is. It depends on where you look for the economic impact. Canada is a net energy exporter. We are also an energy producer. So higher oil prices are positive for our national income, but as you pointed out, Andy, there are regional differences. Western Canada is a net producer, eastern Canada is a net importer. Ultimately, higher oil prices will affect the parts of the country that are buying oil from global markets. But compared to other countries, especially in North Asia like South Korea and Japan, which are net importers of energy, Canada’s status as a large energy producer is a shock absorber in the current environment.
ANDREW: It is interesting. This apparently has some consumers thinking about electric cars and may give further impetus to nuclear power development.
CHRISTINE: That’s right. You are seeing, especially in Europe, increased interest in electric cars. It’s a global phenomenon. In Europe, governments are revisiting renewables. In many parts of Asia, if you look at how Pakistan has fared versus other Asian countries, Pakistan has almost doubled its solar capacity over the past five years in terms of energy generation. Even though it is a large importer of energy, that is partially protecting it and making it more resilient than some other Asian countries. To your point, Andy, what’s happening with oil prices — the volatility and uncertainty — is different depending on geography. In some countries, it’s not just about price but about access to supply. Even if they are willing to pay, they may not be able to access the supply they need given their reliance on the Middle East. You’ve also been hearing more about shortages in jet fuel. Again, depending on where you are, you are facing a very different situation in terms of supply.
ANDREW: And just quickly, Christine, you’ve tended to overweight U.S. stocks lately?
CHRISTINE: We have been very tactical over the last few weeks. Shortly after the war began, we went underweight EAFE because of Europe’s exposure to higher energy prices and the supply shock. We later closed that position and moved slightly overweight U.S. equities. It was an opportunistic call given how much U.S. equities had pulled back at that time.
ANDREW: Christine, thank you very much indeed. Christine Tan, portfolio manager at SLGI Asset Management.
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This BNN Bloomberg summary and transcript of the April 23, 2026 interview with Christine Tan are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
