Global markets soared on optimism of a de-escalation in the Middle East conflict after President Donald Trump said the U.S. could end its military attacks on Iran in two to three weeks.

Wall Street futures were in positive territory after a strong rally in North American markets yesterday.

TSX futures followed sentiment higher.

In Canada, investors are getting results from Groupe Dynamite Inc., Novagold Resources Inc. and Tilray Brands Inc.

On Wall Street, markets are watching earnings from ConAgra Brands Inc. and Lamb Weston Holdings Inc.

“They’re still quite far apart in terms of what a truce means, or what peace means, but the market is embracing the fact that they are talking,” said Rodrigo Catril, currency strategist at National Australia Bank in Sydney.

“That’s a positive sign ... [but] while this is all happening, attacks are continuing from both sides.”

Overseas, the pan-European STOXX 600 was up 2.06 per cent in morning trading. Britain’s FTSE 100 rose 1.66 per cent, Germany’s DAX gained 1.98 per cent and France’s CAC 40 advanced 1.54 per cent.

In Asia, Japan’s Nikkei closed 5.24 per cent higher, while Hong Kong’s Hang Seng rose 2.04 per cent.

Oil prices were off their lows as persistent Middle East volatility unnerved markets even amid reports the U.S.-Israeli war with Iran could be winding down.

Brent futures contract fell 0.12 per cent to US$103.80 a barrel. West Texas Intermediate (WTI) crude futures for May slid 1.23 per cent to US$100.10 a barrel.

“Even if it starts to de-escalate, the flow of tankers won’t resume right away ... shipping costs and insurance, tanker movement will take time to return to normal,” said Priyanka Sachdeva, senior market analyst at Phillip Nova. She added that the actual damage to oil infrastructure could only be assessed afterward.

In other commodities, spot gold rose 1 per cent to US$4,717.82 an ounce. U.S. gold futures for April delivery gained 1.4 per cent to US$4,744.30.

The Canadian dollar strengthened against its U.S. counterpart.

The day range on the loonie was 71.83 US cents to 72.02 US cents in early trading. The Canadian dollar was down about 1.8 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, dropped 0.38 per cent to 99.58.

The euro climbed 0.33 per cent to US$1.1592. The British pound advanced 0.48 per cent to US$1.3290.

In bonds, the yield on the U.S. 10-year note was last down at 4.278 per cent.

Manufacturing PMIs from China, Japan, euro area and UK

S&P global manufacturing surveys released for Canada and U.S.

8:15 a.m. ET: U.S. ADP national employment report for March

8:30 a.m. ET: U.S retail sales for February. Consensus is for a rise of 0.4 per cent, or 0.2 per cent excluding autos and gasoline

10 a.m. ET: U.S. business inventories for January

1:30 pm ET: Bank of Canada Summary of Deliberations for the March 18 policy decision

March U.S. and Canadian auto sales

With Reuters and The Canadian Press