Canadian Markets Poised For Gains On U.S.-Iran Truce

(RTTNews) - Notably higher Canadian and U.S. futures and firm precious metals prices amid easing U.S.-Iran tensions suggest a positive start for the Canadian stock market on Monday.

Weak oil prices could hurt energy stocks and limit market's upside.

Oil prices fell sharply after Iran and the U.S. paused military strikes over the weekend, paving the way for talks to avoid a return to full-scale war.

After the U.S. paused its strikes against Iran for a second night, Iran stopped conducting counterattacks. According to reports, Pakistan is exploring a path toward new U.S.-Iran talks over ending the conflict.

West Texas Intermediate Crude oil futures are down $5.27 or 5.9% at $84.04 a barrel.

Gold futures are up $19.20 or 0.47% at $4,090.00 an ounce, while Silver futures are gaining $0.199 or 0.33% at $59.105 an ounce.

Investors will be focusing on earnings updates from Canadian and U.S. companies for some direction.

Celestica, TFI International, First Capital Realty and Gibson Energy are scheduled to report their earnings today.

Canadian stocks closed higher on Friday even as investors continued to focus on U.S.-Iran conflict and assess the consequences of fresh U.S. tariffs on Canadian imports.

The benchmark S&P/TSX Composite Index traded firmly positive throughout the session before settling at 35,369.10, up by 176.44 points or 0.5%.

Asian stocks moved higher on Monday as oil prices tumbled amid U.S.-Iran truce hopes, helping ease inflation and interest-rate concerns ahead of crucial Fed, BoE and BoJ central bank meetings due this week.

Iran stopped conducting counterattacks and said it had made progress in talks with Oman on management of the Strait of Hormuz after the U.S. paused an almost two-week run of strikes against Iran for a second night.

The major European markets are up firmly in positive territory today, buoyed by easing worries about Middle East tensions and sharply lower crude oil prices. Some positive corporate news contributed as well to the improved sentiment in the markets.