TSX Futures Gain 1.2 Percent on Middle East Truce Hopes

Futures tied to the primary stock index in Canada rose on Wednesday, reflecting a relief rally in global markets as investors monitored signs of potential de-escalation in the Middle East. June futures on the S&P/TSX composite index were up 1.2% by early morning, as the prospect of a ceasefire weighed on oil prices and boosted risk appetite.Global sentiment improved following reports that the United States is seeking a month-long truce and has submitted a 15-point proposal to Iran. While the Iranian military has denied participating in negotiations, the possibility of a breakthrough has raised hopes for stabilized oil supplies from the Gulf region.In commodities, gold prices increased due to a weaker dollar, while oil prices declined. The potential for a ceasefire could help normalize shipping through the Strait of Hormuz, which handles approximately one-fifth of the world's energy supplies. A reduction in energy costs may alleviate pressure on central banks, which have warned that geopolitical strife could fuel inflation and complicate interest rate trajectories.Traders currently expect the Bank of Canada to maintain interest rates at its April meeting, though LSEG data indicates two rate hikes are priced in by the end of the year. Although the S&P/TSX Composite index saw its largest single-day gain in five weeks on Monday, it remains 7.5% below its record closing high set on March 2.In corporate news, Dollarama Inc. is in focus after CIBC upgraded the retailer to an outperformer rating from neutral, despite lowering its price target.