Bay Street Likely To Open On Firm Note

(RTTNews) - Sharply higher Canadian and U.S. futures and rising precious metals prices thanks to U.S.-Iran peace deal agreement point to a firm start on Bay Street Monday morning.

The preliminary framework agreed to by the two nations includes halting the U.S. blockade of Iran and reopening of the Strait of Hormuz. According to reports, an official signing ceremony is scheduled to take place in Switzerland on June 19.

US President Donald Trump announced the agreement on Truth Social on Sunday, saying, "The Deal with the Islamic Republic of Iran is now complete."

"Let the oil flow!" the U.S. President exclaimed and declared that the "great deal" would bring "peace and security to the whole region."

Oil's sharp drop has helped ease concerns about inflation and interest rates. However, the commodity's fall could weigh on energy stocks and limit market's upside.

West Texas Intermediate crude oil futures are down $4.54 or 5.4% at $80.34 a barrel.

Gold futures are up $125.50 or 2.96% at $4,364.30 an ounce, while Silver futures are gaining $3.021 or 4.44% at $70.995 an ounce.

On the economic front, data on Canadian manufacturing sales, wholesale sales and housing starts are due this morning.

Canadian stocks moved higher on Friday amid increasing optimism about U.S.-Iran peace deal following U.S. President Donald Trump's reassurance on signing of an agreement soon and paving the way for the reopening of the Strait of Hormuz.

The benchmark S&P/TSX Composite Index ended with a gain of 266.39 points or 0.77% at 34,937.85.

Asian stocks surged on Monday after U.S. President Donald Trump announced a tentative peace deal with Iran, helping ease investor concerns about inflationary pressures and lessening the need for interest-rate hikes.

European stocks are broadly up with solid gains today with investors cheering the news about U.S.-Iran agreeing to a peace deal, the signing of which is scheduled to happen this Friday in Switzerland.