Equities
Global markets swung around after U.S. President Donald Trump said he had given instructions to postpone any military strikes against Iranian power plants for five days, just hours ahead of a deadline that threatened further escalation in the conflict now in its fourth week.
Wall Street futures were in the black, while TSX futures pointed higher.
“This is obviously a postponement, not a complete cease-fire and we will see what happens from here,” said Chris Beauchamp, chief market analyst at IG Markets.
“What’s done is still not undone, so the impact has yet to be seen. But obviously markets are breathing a sigh of relief on these news.”
Overseas, the pan-European STOXX 600 was up 1.08 per cent in morning trading. Britain’s FTSE 100 rose 0.27 per cent, Germany’s DAX climbed 1.86 per cent and France’s CAC 40 advanced 1.42 per cent.
In Asia, Japan’s Nikkei closed 3.48 per cent lower, while Hong Kong’s Hang Seng dropped 3.54 per cent.
Commodities
Oil prices reversed course after Trump’s comments.
Brent crude futures slid 7.8 per cent to US$103.50 a barrel. West Texas Intermediate (WTI) crude traded at US$90.82 a barrel, down 7.5 per cent.
In other commodities, spot gold declined 2.2 per cent to US$4,388.22 an ounce, extending losses into a ninth straight session. Before Trump’s announcement, gold had fallen 8 per cent at one point to a four-month low.
U.S. gold futures for April delivery dropped 4.2 per cent to US$4,382.30.
Currencies and bonds
The Canadian dollar was little changed against its U.S. counterpart.
The day range on the loonie was 72.69 US cents to 73.08 US cents in early trading. The Canadian dollar was down about 0.19 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, fell 0.17 per cent to 99.48.
The euro gained 0.17 per cent to US$1.1592. The British pound climbed 0.46 per cent to US$1.3401.
In bonds, the yield on the U.S. 10-year note was last down at 4.361 per cent.
Other corporate news
An Air Canada Express jet collided with a fire truck while landing at New York’s LaGuardia airport late on Sunday, killing both pilots, injuring dozens and closing the airport, authorities said.
Economic news
Euro area consumer confidence
10 a.m. ET: U.S. construction spending for January
With Reuters and The Canadian Press