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Markets Surge as Iran De‑Escalation Hopes Lift Wall Street to End Q1

  U.S. stock futures climbed on Wednesday, extending a powerful rally that closed out the first quarter, as investors reacted to fresh signals of potential de‑escalation in the Iran conflict. Futures tied to the S&P 500 rose between 0.4% and 0.7% , Nasdaq 100 contracts gained up to 0.7% , and Dow futures advanced around 0.4% to 0.7% , reflecting renewed optimism across markets.  The upswing followed remarks from both U.S. President Donald Trump and Iranian President Masoud Pezeshkian, each indicating openness to reducing hostilities. Pezeshkian stated that Iran has “the necessary will to end this war,” while Trump suggested the conflict may not last “much longer,” even with the Strait of Hormuz still constrained.  Tuesday’s session had already delivered the strongest single‑day gains in over a month for all three major indexes, fueled by easing oil prices and improving sentiment. Brent crude fell more than 2.9% to around $104 per barrel, while West Texas Intermedia...
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Bank of Canada’s Rate Decision Hangs in the Balance Amid Trade Turmoil and Election Uncertainty

The Bank of Canada is facing a tough call on its latest interest rate decision, with market expectations nearly split between a rate cut and a pause. The central bank has already made seven consecutive cuts since June 2024, bringing its policy rate to 2.75%. However, ongoing trade tensions with the U.S. and uncertainty surrounding the upcoming federal election have complicated the outlook.

Recent inflation data showed a slowdown, with March’s annual inflation rate cooling to 2.3%. This has given policymakers more room to consider another rate cut, but concerns remain about the broader economic impact of U.S. tariffs on Canadian businesses and consumers. Some economists argue that a cut is necessary to cushion the economy, while others warn that holding steady might be the safer move.

Governor Tiff Macklem has acknowledged the “pervasive uncertainty” created by shifting trade policies, stating that multiple economic outcomes remain plausible. With consumer confidence shaken and the housing market struggling, the Bank’s decision today could have significant ripple effects across the economy.

Will the Bank of Canada opt for another cut, or will it hold firm in the face of uncertainty? The answer will shape Canada’s economic trajectory in the months ahead.

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