World stocks advanced as oil prices dropped, easing concerns over potential military action against Iran. U.S. President Donald Trump announced he would delay further strikes, shifting market sentiment. Nvidia shares gained 2% in premarket trading after a 4.3% drop the previous day, as the company investigates whether CEO Jensen Huang was targeted by foreign intelligence.
Wall Street futures were mixed ahead of key U.S. inflation data, which could influence near-term interest rate decisions. TSX futures remained steady following gains in major North American markets the day before. Canadian investors are reviewing earnings reports from companies like Hydro One Ltd., Finning International Inc., and Altius Minerals Corp.
Joost van Leenders, senior investment strategist at Van Lanschot Kempen Investment Management, noted that Trump’s political situation post-midterms may encourage a diplomatic resolution with Iran. Overseas, European markets rose, with the pan-European STOXX 600 up 0.83%, while Asian markets also showed gains, led by Japan’s Nikkei at 2.87%.
Oil prices extended losses, with Brent crude falling 1.9% to US$90.82 a barrel and WTI sliding 1.5% to US$85.53. Tim Waterer, chief market analyst at KCM Trade, attributed this to Trump’s softer stance on Iran. Spot gold dropped 1.5% to US$4,078.53 an ounce, while U.S. gold futures eased 0.7% to US$4,086.30.
The Canadian dollar weakened against the U.S. dollar, trading at 70.71 to 70.90 US cents in early trading. The U.S. dollar index climbed 0.05% to 101.70, while the euro and British pound both declined slightly. In bonds, the yield on the U.S. 10-year note fell to 4.894%. Upcoming economic reports include U.S. inflation data and the Bank of Canada’s summary of deliberations.