Futures tracking the S&P/TSX Composite Index rose on Wednesday after President Trump indefinitely extended the ceasefire with Iran. Trump said the US had agreed to a request from Pakistani mediators to postpone military action until Iranian leaders can present a unified proposal.
Oil prices climbed following reports of gunfire attacks on container ships in the Strait of Hormuz. The advance in equities was more measured than in recent sessions, easing fears of broad-based stagflation and further interest rate hikes and relieving pressure on financial stocks. Canadian bond yields declined, further tempering concerns over weak credit demand.
Energy producers are poised to post smaller gains as the oil rally cools, while gold prices rose on news of the ceasefire extension, lending support to mining stocks. Elsewhere, Waste Connections is scheduled to report earnings after the closing bell.
On the trade front, Canada’s chief negotiator to the US said it was unlikely that all outstanding issues under the North American trade pact would be resolved by the July 1 review deadline.
