Equities
Global markets jumped amid reports the U.S. and Iran are closing in on a one-page memo to end their war, while momentum in AI-driven trades accelerated.
Wall Street futures were in the black after the S&P 500 and Nasdaq closed at record highs yesterday. TSX futures followed sentiment higher.
In Canada, investors are getting results from Cenovus Energy Inc., Loblaw Cos. Inc., Sun Life Financial Inc., Great-West Lifeco Inc., Nutrien Ltd., Fortis Inc., Ivanhoe Mines Ltd., Linamar Corp. and Restaurant Brands International Inc.
On Wall Street, markets are watching earnings from Arm Holdings PLC, Walt Disney Co., Applovin Corp., Uber Technologies Inc., CVS Health Corp., Marriott International, DoorDash Inc., Warner Bros Discovery Inc. and MetLife Inc.
“It seems equity investors are still looking to put money to work and are jumping on positive-sounding news from the Gulf,” said Chris Turner, head of global markets at ING.
“The prospect of a permanent peace deal remains highly uncertain, however, and oil looks set to remain very volatile.”
Overseas, the pan-European STOXX 600 was up 2.14 per cent in morning trading. Britain’s FTSE 100 rose 2.1 per cent, Germany’s DAX gained 2.55 per cent and France’s CAC 40 advanced 2.42 per cent.
In Asia, Japan’s Nikkei remained closed for holiday, while Hong Kong’s Hang Seng advanced 1.22 per cent.
Commodities
Oil prices sank after Trump said he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing progress toward a comprehensive agreement with Iran, without giving details.
Brent crude futures dropped 7.8 per cent to US$101.20 a barrel. West Texas Intermediate (WTI) futures declined 9 per cent to US$93.06.
“This signals potential de-escalation and raises hopes for the release of stranded vessels inside the Gulf, which could gradually bring supply back to the market,” said Anh Pham, senior research specialist for oil at LSEG.
In other commodities, spot gold gained 3.2 per cent to US$4,703.09 anounce. U.S. gold futures for June delivery rose 3.2 per cent to US$4,714.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 73.39 US cents to 73.65 US cents in early trading. The Canadian dollar was up about 1.85 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.64 per cent to 97.81. The dollar was pegged at $1.3595.
The euro rose 0.7 per cent to US$1.1778. The British pound gained 0.63 per cent to US$1.362.
In bonds, the yield on the U.S. 10-year note was last down at 4.352 per cent.
Economic news
Euro zone’s services and composite PMI
10 a.m. ET: Canada’s Ivey PMI for April.
10 a.m. ET: U.S. Global Supply Chain Pressure Index for April.
4:15 p.m. ET: Bank of Canada governor Tiff Macklem and senior deputy governor Carolyn Rogers appear before the Senate Standing Committee on Banking, Commerce & the Economy.
With Reuters and The Canadian Press