Equities
Global markets were mixed after U.S. President Donald Trump said he would indefinitely extend the Iran ceasefire. But optimism about an end to the war was muted as Iran attacked ships in the Strait of Hormuz and there was no sign of a resumption in U.S.-Iran talks.
Wall Street futures were in positive territory after major U.S. markets closed down yesterday on geopolitical uncertainty.
TSX futures followed sentiment higher after Canada’s main stock market posted its biggest daily decline in a month.
In Canada, investors are getting results from Metro Inc. and Rogers Communications Inc.
On Wall Street, markets are watching earnings from Tesla Inc., Philip Morris International Inc., International Business Machines Corp., Texas Instruments Inc., AT&T Inc. and Boeing Co.
Thomas Mathews, head of markets for Asia-Pacific at Capital Economics, said the earlier ceasefire was widely seen as indefinite so it was not surprising the latest announcement had not moved markets much.
“Obviously, any news on the re-opening of the Strait is a good candidate for the next big market flashpoint,” Mathews added.
Overseas, the pan-European STOXX 600 was down 0.11 per cent in morning trading. Britain’s FTSE 100 slid 0.16 per cent, Germany’s DAX declined 0.27 per cent and France’s CAC 40 gave back 0.43 per cent.
In Asia, Japan’s Nikkei closed 0.4 per cent higher, while Hong Kong’s Hang Seng fell 1.22 per cent.
Commodities
Oil prices reversed course higher following reports of gunfire attacks on container ships in the Strait of Hormuz.
Brent crude futures were up 1.12 per cent to $99.58 a barrel. West Texas Intermediate (WTI) crude futures rose 1.13 per cent to $90.68.
In other commodities, spot gold rose 1 per cent to US$4,759.63 an ounce. U.S. gold futures for June delivery gained 1.3 per cent to US$4,778.30.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 73.14 US cents to 73.30 US cents in early trading. The Canadian dollar was up about 1.15 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.06 per cent to 98.34. The U.S. dollar traded at $1.3654.
The euro climbed 0.07 per cent to US$1.1751. The British pound advanced 0.07 per cent to US$1.3517.
In bonds, the yield on the U.S. 10-year note was last down at 4.291 per cent.
Economic news
Japan’s trade surplus for March.
Euro zone’s consumer confidence for April.
8:30 a.m. ET: Canada’s new housing price index for March. Estimates are a month-over-month decline of 0.1 per cent and year-over-year drop of 2.2 per cent.
With Reuters and The Canadian Press