Futures linked to the S&P/TSX Composite Index advanced on Thursday after the United States signaled it had concluded its strikes against Iran, opening the door for negotiations to resume. President Trump indicated that no further retaliatory measures would be necessary if Iran refrains from additional attacks, and noted that both countries remained close to an agreement that could allow energy exports through the Persian Gulf to restart.
Oil prices declined, easing inflation concerns and pulling bond yields lower. This supported financial stocks and the broader index, as fears of higher borrowing costs and more hawkish central bank policies receded. On Wednesday, the Bank of Canada held its benchmark interest rate steady, in line with expectations.
At the same time, Trump suggested the United States may choose not to renew its free trade agreement with Canada and Mexico, even as negotiations with both countries continue.
