Futures linked to the S&P/TSX Composite Index inched higher on Friday as an agreement to extend the US–Iran ceasefire renewed hopes for a resolution to the Middle East conflict, while investors also digested fresh GDP data. The United States and Iran agreed on Thursday to prolong their ceasefire and lift restrictions on shipping through the Strait of Hormuz, though the accord still requires approval from US President Donald Trump.
Oil prices pulled back, driving bond yields lower as energy-driven inflation worries eased. This supported banking shares and the broader equity index by tempering concerns over higher borrowing costs. At the same time, Canadian GDP was flat in the first quarter of 2026, following a 0.2% contraction in the final quarter of 2025. The figures reinforced expectations of a dovish stance from the Bank of Canada and exerted additional downward pressure on bond yields. Gold prices also ticked higher, providing a boost to mining stocks.
