Canada Stocks-TSX futures flat as US-Iran stalemate keeps investors cautious
EWC•TSX futures steady as investors watch US-Iran tensions
Futures tied to Canada's main stock index were flat on Tuesday as investors weighed the lack of meaningful progress toward ending the U.S.-Iran conflict and awaited key U.S. inflation data due later this week.
September futures on the S&P/TSX index SXFcv1 were up 0.07% at 07:03 a.m. ET (1102 GMT).
Oil prices, inflation worries and Canadian market backdrop
- U.S. President Donald Trump on Monday responded to Iran's conditions for a peace deal with his own demands that Iran pay compensation for people killed in wars, attacks and protests, in a rhetorical escalation likely to complicate efforts to reopen the Strait of Hormuz.
- Brent crude futures rose to more than $89 a barrel as ongoing disruption to Middle East energy flows and fading hopes for a peace deal heightened concern over global oil supplies. O/R
- Higher oil prices have supported Canada's energy sector .SPTTEN, which is up 40.5% this year. However, worries that a prolonged supply disruption could fuel inflation and muddy the outlook for monetary easing kept broader risk appetite in check.
- Canada's main stock index .GSPTSE closed at record high levels on Monday, extending last week's gains amid expectations for lower U.S. borrowing costs following soft jobs data and upbeat corporate earnings.
- U.S. inflation figures due on Wednesday could offer further clues on the Federal Reserve's policy path.
- Among other commodities, gold prices XAU= fell on the day after hitting a more than two-month high earlier in the session.
- Barrick Mining ABX.TO said it had appointed Sebastiaan Bock as chief executive officer for its Rest of World division. The stock fell 6.5% on Monday after the company posted second-quarter profit below analyst estimates.
