Equities
Global shares were on the rise as signs Iran and the U.S. were negotiating an end to their conflict eased concerns about inflation and a global economic slowdown.
TSX futures followed sentiment higher.
Markets in the United States, Britain and Hong Kong were closed for holiday.
“Markets are rapidly transitioning from pricing geopolitical fear toward pricing a potential peace dividend as Hormuz reopening expectations pressure oil and the dollar lower,” analyst Stephen Innes said in a commentary.
Overseas, the pan-European STOXX 600 was up 0.94 per cent in morning trading. Germany’s DAX rose 1.56 per cent and France’s CAC 40 advanced 1.81 per cent.
In Asia, Japan’s Nikkei closed 2.87 per cent higher, surging past the 65,000 level for the first time.
Commodities
Oil prices fell to two-week lows as optimism grew that the United States and Iran were moving closer to a peace deal, even though they remain at odds over key issues such as blockades on the Strait of Hormuz.
Brent crude futures were down 5.7 per cent to US$97.60 a barrel, while West Texas Intermediate (WTI) futures declined 5.7 per cent to US$91.12 a barrel.
“Notwithstanding all the caveats and risks that remain to the peace deal and Strait of Hormuz, there is now some light at the end of the tunnel, which will bring some near-term oil price relief,” said MST Marquee analyst Saul Kavonic.
In other commodities, spot gold was up 1.5 per cent at US$4,574.17 an ounce. U.S. gold futures for June delivery gained 1.2 per cent to US$4,576.00.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 72.34 US cents to 72.49 US cents in early trading. The Canadian dollar was down about 1.28 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.32 per cent to 98.92. The dollar was pegged at $1.3806.
The euro rose 0.39 per cent to US$1.1650. The British pound gained 0.51 per cent to US$1.3503.
The U.S. bond market is closed for the Memorial Day holiday.
Economic news
8:30 a.m. ET: Canadian wholesale trade for April.
8:30 a.m. ET: Canada’s construction investment for March
With Reuters and The Canadian Press