Equities
Global markets were on the rise as traders waited for details on a potential deal to reopen the Strait of Hormuz and extend the U.S.-Iran ceasefire.
Wall Street futures were in positive territory after major North American markets closed up yesterday.
TSX futures pointed higher as investors assessed GDP data releases.
Canada’s economy contracted in the first quarter of the year on an annualized basis, data showed, making it two consecutive quarters of annualized decline which some would call a technical recession.
In Canada, investors are getting results from Laurentian Bank of Canada.
“The market’s already taking the view that a deal’s going to be done and the Strait is going to be open,” said Jason Wong, senior market strategist at BNZ in Wellington.
Overseas, the pan-European STOXX 600 was up 0.48 per cent in morning trading. Britain’s FTSE 100 rose 0.14 per cent, Germany’s DAX edged up 0.07 per cent and France’s CAC 40 climbed 0.57 per cent.
In Asia, Japan’s Nikkei closed 2.53 per cent higher, while Hong Kong’s Hang Seng advanced 0.7 per cent.
Commodities
Oil futures eased after reports that the U.S. and Iran had reached agreement on a potential ceasefire extension.
Brent crude futures declined 1.8 per cent to US$91.98 a barrel. West Texas Intermediate (WTI) futures were down 1.9 per cent to US$87.18.
“While oil flows through the Strait of Hormuz remain restricted and oil inventories keep falling, the market focus remains on the possibility of a deal between the U.S. and Iran,” said UBS analyst Giovanni Staunovo.
In other commodities, spot gold was up 0.9 per cent to US$4,532.03 an ounce. U.S. gold futures for August delivery gained 0.7 per cent to US$4,562.60.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 72.29 US cents to 72.66 US cents in early trading. The Canadian dollar was down about 1.64 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, climbed 0.02 per cent to 99.04. The dollar was pegged at $1.3812.
The euro slid 0.02 per cent to US$1.1649. The British pound declined 0.03 per cent to US$1.3441.
In bonds, the yield on the U.S. 10-year note was little changed at 4.450 per cent.
Economic news
Japan’s CPI, jobless rate, consumer confidence, retail sales and industrial production
Germany’s CPI and unemployment
8:30 a.m. ET: Canada’s real GDP for Q1, which contracted at an annualized rate of 0.1 per cent and was unchanged from Q4. The Street forecast a gain of 1.4 per cent from Q4.
8:30 a.m. ET: Canada’s monthly real GDP for March, which declined 0.1 per cent, Consensus was for a 0.1-per-cent increase from February.
8:30 a.m. ET: U.S. wholesale and retail inventories for April.
8:30 a.m. ET: U.S. goods trade deficit for April.
With Reuters and The Canadian Press