TSX 60 Futures Drop 0.3% as Brent Crude Holds at $110
S&P/TSX 60 futures fell 6 points (0.3%) by 08:37 ET, pressured by elevated Brent crude futures around $110 a barrel and constrained shipping through the Strait of Hormuz. US services PMI slowed to sub-expectations in March, with employment contracting and prices paid rising to their highest since October 2022.
1. TSX Futures Performance
By 08:37 ET, the S&P/TSX 60 index futures contract had dropped 6 points, or 0.3%, extending a recent pullback after the TSX composite reached a four-week high. Weakness in resource stocks linked to energy and materials sectors amplified the downside in Canada’s main futures gauge.
2. Oil Prices and Shipping
Brent crude futures traded near $110.70 a barrel, marking a 0.9% gain, as tanker traffic through the Strait of Hormuz remained minimal. Disruptions in this vital waterway, through which nearly one-fifth of global oil supplies pass, have kept energy prices elevated.
3. US Services Sector Softening
March’s services purchasing managers index expanded at a slower-than-forecast pace, with the employment sub-index contracting and the prices paid measure spiking to its highest reading since October 2022. These readings highlight cooling momentum in the crucial US services economy.
4. Geopolitical Tensions and Deadline
A looming deadline set by President Trump requires Iran to reopen the Strait of Hormuz by 8 p.m. Eastern time or face strikes on bridges and power plants. This ultimatum has heightened uncertainty over global oil flows and market stability.