Equities
Global stocks and bonds rallied hard and oil prices tumbled as a framework peace deal between the United States and Iran promised to ease inflationary pressures globally and lessen the need for higher interest rates.
Wall Street futures rose after major North American indexes finished higher on Friday. Dow futures were up 0.9 per cent, S&P futures up 1.23 per cent and Nasdaq futures up 2.07 per cent as of 8:24 a.m. ET. TSX futures edged up 0.8 per cent.
In Canada, investors are getting results from Canopy Growth Corp.
A framework deal that would reopen the Strait of Hormuz was “about as supportive as you can get” for markets, especially after the excitement triggered by the recent record-breaking US$75-billion SpaceX IPO, said Saxo Bank strategist John Hardy. “What do you add on from here to get sentiment even bubblier?”
Overseas, the pan-European STOXX 600 was up 0.67 per cent in morning trading. Britain’s FTSE 100 gained 0.09 per cent, Germany’s DAX rose 1.36 per cent and France’s CAC 40 advanced 1.21 per cent.
In Asia, Japan’s Nikkei closed 4.99 per cent higher, while Hong Kong’s Hang Seng finished 0.50 per cent higher.
Commodities
Oil prices slipped to a three-month low after the U.S. and Iran said they had reached an initial deal.
Brent crude futures fell 5.1 per cent to US$82.86 a barrel, while U.S. West Texas Intermediate was at US$79.98, down 5.8 per cent.
“It will take time for oil to approach the pre-crisis level of 20 million barrels per day sailing through this chokepoint. Estimates of the full resumption of traffic vary from weeks to months,” said Tamas Varga, analyst at PVM Oil Associates. “Financial investors are, therefore, merely borrowing future physical supply, hence the current cheapening of oil prices. The slow resumption will possibly result in a supply deficit throughout 2026.”
In other commodities, spot gold climbed 2.8 per cent to US$4,336.49 per ounce. U.S. gold futures for August delivery rose 2.8 per cent to US$4,358.00.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 71.44 US cents to 71.68 US cents in early trading. The Canadian dollar was down about 1.66 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, lost 0.27 per cent to 99.225. The dollar was pegged at $1.3975.
The euro gained 0.41 per cent to US$1.1671. The British pound rose 0.18 per cent to US$1.3430.
In bonds, the yield on the U.S. 10-year note was last down at 4.455 per cent.
Other corporate news
JPMorgan Chase & Co. is expanding its US$1.5-trillion economic security and resilience initiative to Canada, aiming to boost key sectors such as energy, defence and critical minerals with billions of dollars in new financing and support, The Globe’s James Bradshaw reports.
Economic news
Euro area industrial production and trade surplus
8:15 am ET: Canada housing starts for May. Consensus is for a drop of 8.6 per cent on an annualized basis.
8:30 am ET: Canadian manufacturing sales and new orders for April. Consensus is for sales to be up 4.5 per cent.
8:30 am ET: Canadian wholesale trade for April
9:15 am ET: U.S. industrial production and capacity utilization for May
With Reuters and The Canadian Press
