Futures tracking Canada’s S&P/TSX Composite Index inched higher after the United States and Iran signed an interim peace agreement. The deal is intended to end hostilities and reopen the Strait of Hormuz, with formal negotiations over Tehran’s nuclear program scheduled to begin later this week.
Oil prices declined in response to the agreement, easing fears of a renewed bout of global inflation and an extended period of elevated interest rates. This pullback in crude supported financial stocks and lifted the broader index. At the same time, gold prices slipped as the US dollar strengthened on the back of a hawkish Federal Reserve outlook, weighing on mining shares. Energy stocks are also expected to face pressure amid the downturn in oil prices.
