01.04.202611:34:16UTC+00TSX Futures Rise as US Signals Middle East Resolution

Futures tracking the S&P/TSX Composite Index advanced on Wednesday as global markets rallied after US President Trump signaled a potentially swift resolution to the Middle East conflict. On Tuesday, Trump and Secretary of State Marco Rubio suggested that tensions with Iran may be nearing an end, pointing to possible direct engagement with Iranian leaders and a de-escalation of hostilities, even in the absence of a formal agreement.

Oil prices, which had surged since the start of the conflict, fell sharply, easing concerns about energy-driven stagflation. Declining bond yields helped alleviate worries over credit conditions and provided support to financial stocks, while the pullback in crude prices weighed on energy producers.

At the same time, gold extended its gains as the US dollar weakened following Trump’s de-escalation signals, bolstering mining shares. Despite Wednesday’s rebound, the TSX recorded a 4.6% decline in March, its steepest monthly drop since May 2023. Even so, the index finished the first quarter up 3.3%, marking its seventh consecutive quarter of gains.