(RTTNews) - Canadian stocks look set to open with a strong positive gap on Wednesday thanks to the U.S. and Iran agreeing to a two-week ceasefire to ensure stability in the critical energy corridor in the Gulf.
The sharp fall in oil prices has helped ease concerns about inflation and global economic growth.
West Texas Intermediate crude oil futures are down as much as $19.59 or 17.3% at $93.36 a barrel.
Gold futures are up $141.60 or 3.01% at $4,826.30 an ounce, and Silver futures are gaining $5.598 or 7.78% at $77.585 an ounce.
The ceasefire deal has opened the way to getting shipping on the move in the Strait of Hormuz, but both Iran and Oman can levy transit fees on ships traversing the waterway.
The ceasefire calls for Israel and Hezbollah to halt fighting in Lebanon. U.S. President Donald Trump said he was holding off on his threatened attacks on Iranian bridges and power plants, adding a 10-point proposal received from Iran is a workable basis on which to negotiate.
The Canadian market ended marginally up on Tuesday after a cautious session, as investors held back risky moves and focused on geopolitical news.
The benchmark S&P/TSX Composite Index, which remained weak till around mid-afternoon, recovered later on to end with a gain of 55.55 points or 0.17% at 33,237.52.
Asian stocks skyrocketed on Wednesday after the U.S. and Iran have agreed to a conditional two-week ceasefire, during which shipping traffic will be allowed through the Strait of Hormuz.
Oil prices crashed below $100 a barrel as the last-minute ceasefire agreement helped ease fears of an immediate supply shock. Despite truce, there were reports of missile and drone threats elsewhere in the region.
The European markets are up sharply with investors going on a buying spree, reacting to news about the U.S. and Iran agreeing to a two-week ceasefire. The sharp drop in oil prices has helped ease concerns about inflation and global economic growth, contributing substantially to the improved sentiment.
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