Futures tracking Canadian equities edged higher on Tuesday as oil prices extended their decline ahead of potential US–Iran talks at this week’s UN meeting. Iran has reportedly offered to reopen the Strait of Hormuz within seven days if the United States takes initial steps to ease military pressure. The retreat in oil, a key driver of recent inflationary pressures that have prompted major central banks to raise interest rates, provided a lift to credit-sensitive sectors.
In contrast, Bank of Canada Governor Tiff Macklem cautioned on Monday that US tariffs could slow fourth-quarter growth to below 1%, noting that upcoming rate decisions will have to weigh weaker economic momentum against rising energy costs linked to the Iran conflict. Meanwhile, gold prices slipped, putting pressure on mining stocks.
