Equities
Global shares rose on Tuesday after U.S. President Donald Trump announced the ceasefire between Israel and Iran, but the agreement appeared shaky with Israel accusing Iran of firing more missiles early on Tuesday. Iran denied that it had violated the ceasefire.
Risk assets rallied on initial announcement. Wall Street and TSX futures were on track for a higher open.
“Investors mostly shrugged at what appeared on the surface a seismic geopolitical event over the weekend and those who kept their nerve and held off from de-risking have so far been proven right,” said Kenneth Broux, head of corporate research FX and rates at Societe Generale.
In Canada, investors are getting results from BlackBerry Ltd. Traders are also assessing May inflation data, which was unchanged from the previous month at 1.7 per cent.
On Wall Street, markets are watching earnings from Carnival Corp. and FedEx Corp. Investors also assessed Federal Reserve Chair Jerome Powell’s comments reiterating the central bank’s wait-and-watch approach to interest rates as tariff-driven price pressures become evident.
Overseas, the pan-European STOXX 600 was up 1.29 per cent in midday trading. Britain’s FTSE 100 rose 0.23 per cent, Germany’s DAX gained 1.71 per cent and France’s CAC 40 increased by 1.17 per cent.
In Asia, Japan’s Nikkei closed 1.14 per cent higher, while Hong Kong’s Hang Seng was up 2.06 per cent.
Commodities
Oil fell on the ceasefire news, but remained volatile after Israel accused Iran of launching new missile fire and vowed to retaliate.
The Brent benchmark touched its lowest since June 11 and was last at US$68.81 a barrel, down 3.7 per cent. U.S. crude futures dropped 3.7 per cent to US$65.91 a barrel.
“The geopolitical premium has deflated, but tensions between Israel and Iran remain unresolved – and the risk of missteps and renewed escalation still lingers,” said SEB analyst Ole Hvalbye.
In other commodities, spot gold was down was down 1.2 per cent to US$3,326.87 an ounce.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 72.78 US cents to 72.96 US cents in early trading. The Canadian dollar was up about 0.67 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, lost 0.36 per cent to 98.06.
The euro gained 0.18 per cent to US$1.1599. The British pound gained 0.62 per cent to US$1.3607.
In bonds, the yield on the U.S. 10-year note was up slightly at 4.371 per cent ahead of the North American opening bell.
Economic news
Germany business climate
(8:30 a.m. ET) Canadian CPI for May. The Street expects a rise of 0.5 per cent from April and a year-over-year gain of 1.7 per cent.
(8:30 a.m. ET) Canadian manufacturing sales for May.
(8:30 a.m. ET) U.S. current account deficit for Q1.
(9 a.m. ET) U.S. S&P CoreLogic Case-Shiller Home Price Index (20 city) for April. Estimates are increases of 0.1 per cent from March and 4.0 per cent year-over-year.
(9 a.m. ET) U.S. FHFA House Price Index for April. Estimate is a rise of 0.1 per cent from March and 3.5 per cent year-over-year.
(10 a.m. ET) U.S. Conference Board Consumer Confidence Index for June.
(10 a.m. ET) U.S. Fed Chair Jerome Powell testifies on the semi-annual monetary policy report to the House Financial Services Committee.
Also: NATO summit in the Hague, Netherlands through Wednesday
With Reuters and The Canadian Press