FX.co ★ TSX Futures Spike on US-Iran Ceasefire Deal

Futures tracking the S&P/TSX Composite Index jumped on Wednesday after US President Donald Trump announced a temporary ceasefire with Iran. Oil prices retreated following the agreement, which includes reopening the Strait of Hormuz. The move eased fears that an energy shock would intensify inflation and force the Bank of Canada to keep interest rates at restrictive levels, improving the outlook for equities. Declining bond yields reduced credit concerns and bolstered financial stocks, while weaker oil prices weighed on energy producers. Meanwhile, gold climbed to a near three-week high as the ceasefire prompted a reassessment of risk, boosting mining shares.