Bay Street Seen Extending Recent Gains

(RTTNews) - Canadian shares are likely to open on a firm note Wednesday morning, extending gains from the previous session, amid growing optimism about an end to the ongoing war in the Middle East. Higher precious metals prices may trigger another round of buying in the materials sector.

Canadian manufacturing PMI reading for the month of March is due at 9:30 AM ET.

Canadian stocks closed sharply higher on Tuesday as investors reacted positively to reports stating that U.S. President Donald Trump is planning to end the military campaign in Iran and leave the task of reopening the Strait of Hormuz to U.S. allies.

The benchmark S&P/TSX Composite Index traded in positive territory right through the session and ended with a gain of 833.10 points or 2.61% at 32,768.04.

Ten of the 11 sectors posted gains today, with the materials sector leading the pack.

Asian stocks soared on Wednesday after U.S. stocks saw their best day in almost a year overnight on renewed hopes that the Iran war, which is in its fifth week, could soon end.

U.S. President Donald Trump said the war could end in two weeks sans a deal to re-open the Strait of Hormuz, brining much-needed relief to markets roiled by the conflict.

The major European markets are up sharply, with investors indulging in hectic buying across the board amid growing expectations of a de-escalation in Middle East tensions.

In commodities trading, West Texas Intermediate crude oil futures are down $1.95 or 1.92% at $99.41 a barrel.

Gold futures are up $89.30 or 1.91% at $4,767.90 an ounce, while Silver futures are up $0.291 or 0.39% at $75.210 an ounce.