Canada Stocks-TSX futures edge higher as US-Iran tensions lift oil

Futures tracking Canada's blue-chip stocks inched up on Monday, as oil prices gained on renewed U.S.-Iran hostilities in the Strait of Hormuz, while the index was on track for a fifth straight monthly gain.

September futures on the S&P/TSX index SXFcv1 were up 0.12% at 06:30 a.m. ET (1030 GMT), though trading volumes were low.

• The U.S. attacked Iran's Larak Island in the Strait of Hormuz on Sunday, and Tehran retaliated by attacking two U.S. air bases in Jordan, sending oil prices up over 3%.
• The TSX is set for its fifth month of gains, lifted by a stellar rally in miners, on the back of gains in metal prices. The sector .GSPTTMT has gained over 27% in August.
• Investors were also assessing increased chances of an interest-rate hike by the U.S. Federal Reserve next month, after Chair Kevin Warsh reiterated the central bank's stance on bringing inflation down in his Jackson Hole speech on Friday.
• Markets now see a more than 60% chance of a hike next month, compared to about 41% a week ago, per CME's FedWatch tool.
• The U.S. employment report, due on Friday, could further influence expectations of the Fed's monetary policy path, and set the tone for global markets.
• In Canada, the central bank will announce its next policy decision on Wednesday and is widely expected to keep interest rates on hold at 2.25%.
• A domestic employment report and S&P Global's business manufacturing survey will also be in focus this week.
• Canada's main TSX index ended down for two consecutive weeks on Friday, despite robust results from major domestic banks that wrap up the corporate earnings season.