TSX Futures Slip on Escalating Middle East Tensions

The TSX edged down to below 34,000 on Monday as hopes for a Middle East ceasefire faded after weekend US-Iran talks collapsed and Washington announced a blockade of Iran’s coast. Oil prices surged, reigniting inflation fears amid supply-shock risks, lifting bond yields and reviving worries over weaker credit demand and potential rate hikes, pressuring banks. Royal Bank of Canada, TD Bank and Bank of Montreal all lost about 1%. Gold slipped to a near one-week low as inflation jitters dampened expectations for central banks rate cuts, weighing on miners. Agnico Eagle shed over 1% while Barrick and Wheaton Precious Metals lost near 1%. Energy producers, however, traded higher on surging oil prices. Canadian Natural and Tourmaline Oil both gained about 2%, while Suncor Energy advanced over 2%. Elsewhere, GFL Environmental slumped near 7% as it neared a C$6 billion deal to buy Secure Waste Infrastructure.

Futures tracking the TSX edged lower on Monday as hopes for a Middle East ceasefire faded after weekend US-Iran talks collapsed and Washington announced a blockade of Iran’s coast. Oil prices surged, reigniting inflation fears amid supply-shock risks, lifting bond yields and reviving worries over weaker credit demand and potential rate hikes, pressuring banks. Gold slipped to a near one-week low as inflation jitters dampened expectations for central banks rate cuts, weighing on miners. Energy producers, however, were set to open higher on surging oil prices. Elsewhere, GFL Environmental neared a C$6 billion deal to buy Secure Waste Infrastructure, while BP agreed to acquire stakes in three Namibian offshore blocks from Canada’s Eco Atlantic Oil & Gas.

The S&P/TSX Composite Index rose over 0.5% to trade above 33,500 on Friday, lifted by hopes of a sustained Middle East ceasefire. Oil prices seesawed as Pakistan prepares to host US and Iranian delegations, while Israel and Lebanon are set to meet in Washington next week, easing pressure on financials amid lingering inflation concerns. Royal Bank of Canada and TD Bank each gained 0.5%. Energy stocks rebounded with Canadian Natural up 1% and Suncor Energy 0.6%. In turn, Agnico Eagle rose 0.5% and Wheaton Precious Metals nearly 2% on higher gold prices. Canada’s unemployment rate held at 6.7% in March, unchanged from February and slightly below the 6.8% forecast.