Futures linked to the S&P/TSX Composite Index turned sharply higher as oil prices declined, after Donald Trump signaled a pause in the escalation of the conflict with Iran. On Monday, Trump said he had ordered a five-day delay to any potential strikes on Iranian power plants, just hours before a key deadline that had stirred fears of further escalation in the four-week conflict.
The retreat in crude prices eased worries about energy-driven inflation, helping to push bond yields lower and bolstering credit-sensitive sectors such as Canadian banks. While the diminished inflation pressure supported financial stocks, it weighed on energy producers that had recently benefited from the spike in oil prices.
At the same time, investors are watching developments in transportation after an Air Canada Express CRJ-900 collided with a Port Authority of New York and New Jersey emergency vehicle on the runway at LaGuardia Airport late Sunday.