Equities
Global markets were mixed in cautious trading as investors assessed the prospects of a U.S.-Iran peace deal, even as the fate of the critical Strait of Hormuz appeared unresolved.
Wall Street futures were in the black after the S&P 500 and Nasdaq closed at fresh record highs yesterday.
TSX futures followed sentiment higher.
In Canada, investors are getting results from BCE Inc., Aritzia Inc., Maple Leaf Foods Inc., Premium Brands Holdings Corp., Pembina Pipeline Corp., MDA Space Ltd., Canadian Natural Resources Ltd., Chartwell Retirement Residences and Canadian Apartment Properties REIT.
On Wall Street, markets are watching earnings from McDonald’s Corp., Shell PLC, Gilead Sciences Inc. and Airbnb. Inc.
“Regardless of the back and forth, it’s the closest that the U.S. and Iran have been to potentially getting a peace deal and that’s what’s driving the positive momentum in markets this morning,” said Daniela Hathorn, senior market analyst at Capital.com.
Overseas, the pan-European STOXX 600 was down 0.2 per cent in morning trading. Britain’s FTSE 100 declined 0.61 per cent, Germany’s DAX slipped 0.11 per cent and France’s CAC 40 gave back 0.14 per cent.
In Asia, trading returned at Japan’s Nikkei after an extended break, closing 5.58 per cent higher, while Hong Kong’s Hang Seng gained 1.57 per cent.
Commodities
Oil prices extended losses on renewed hopes for a U.S.-Iran peace deal that could bring a gradual reopening of the Strait of Hormuz.
Brent crude futures fell 3.3 per cent to $97.93 a barrel. West Texas Intermediate (WTI) crude lost 3. per cent to trade at $91.73.
“From a broader perspective, oil markets have remained stuck between diplomacy and disruption for more than two months, with investors’ emotions being manipulated by headlines almost daily,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“If a formal deal eventually materializes, oil prices could witness a free fall as geopolitical premiums rapidly evaporate from the market. However, any fresh signs of attacks on oil infrastructure or escalation in the Middle East could easily trigger another parabolic spike in crude prices.”
In other commodities, spot gold was up 1 per cent to US$4,735.32 an ounce. U.S. gold futures for June delivery gained 1.1 per cent to US$4,745.90.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 73.28 US cents to 73.43 US cents in early trading. The Canadian dollar was up about 1.35 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.134 per cent to 97.89. The dollar was pegged at $1.3631.
The euro climbed 0.15 per cent to US$1.1767. The British pound advanced 0.13 per cent to US$1.3611.
In bonds, the yield on the U.S. 10-year note was last down at 4.336 per cent.
Economic news
China’s foreign reserves
Euro zone’s retail sales
Germany’s factory orders
8:30 a.m. ET: U.S. initial jobless claims for week of May 2. Estimate is 200,000, up 11,000 from the previous week.
8:30 a.m. ET: U.S. productivity for Q1.
10 a.m. ET: U.S. construction spending for March.
3 p.m. ET: U.S. consumer credit for March.
With Reuters and The Canadian Press