TSX Futures Slip as Geopolitical Risks Rise

The S&P/TSX Composite Index fell nearly 1% to trade below 35,500 on Thursday on escalating Middle East tensions and renewed AI spending concerns. Oil prices surged after fresh strikes near the Strait of Hormuz heightened fears of supply disruptions, fueling inflation concerns and reinforcing expectations of hawkish central banks. Banks declined, with RBC and TD Bank down nearly 2%, while BMO and Scotiabank lost over 1%. Gold prices slipped, pressuring miners. Agnico Eagle shed about 2%, while Barrick and WPM lost over 1.5%. Tech stocks also weakened after Big Tech earnings revived concerns over heavy AI-related capital spending. Shopify fell more than 2% and Constellation Software lost over 2.5%. Meanwhile, Waste Connections (+1.4%), Mullen (+4.5%), and Teck Resources (+5%) beat profit estimates. Cenovus (+2.6%) and Ovintiv (+3%) report later today. Elsewhere, Panama is considering partnering with First Quantum (-0.6%) to reopen the Cobre Panama mine.

Futures tracking the S&P/TSX Composite Index fell on Thursday amid escalating Middle East tensions and renewed concerns over AI spending. Oil prices surged after Yemeni Houthis struck two Saudi oil tankers, heightening fears of disruptions to global energy supplies. Rising energy prices fueled inflation concerns, raising expectations that central banks may keep interest rates higher for longer and pressuring financial stocks and the broader market. Gold prices slipped, weighing on mining shares. Meanwhile, technology stocks fell after Big Tech earnings in the US revived concerns over heavy AI-related capital spending. Elsewhere, Waste Connections, Mullen, and Teck Resources beat second-quarter profit estimates. Cenovus and Ovintiv are due to report later in the session. Separately, Panama is considering creating a state-owned mining company to partner with Canada's First Quantum in reopening the Cobre Panama copper mine.

The S&P/TSX Composite Index rose 0.3% to close at 35,485 after reaching a record high earlier in the session, as rising commodity prices supported mining and energy stocks. Miners advanced as gold edged higher on a softer US dollar and safe-haven demand amid escalating tensions between the US and Iran. Agnico Eagle gained 3.5%, Barrick added 2.8%, WPM rose 1.1%, and Franco-Nevada advanced 3.1%. Energy stocks also gained, tracking a jump in oil prices on mounting concerns over disruptions to Middle Eastern supply routes linked to escalating US-Iran hostilities. Canadian Natural added 1.8%, Imperial Oil gained 0.8%, while Suncor rose 1.5% and Cenovus advanced 0.6% ahead of its earnings report on Thursday. On the downside, technology stocks weakened ahead of earnings from US technology giants Alphabet and Tesla. Shopify shed 3.9%, Constellation Software fell 2.1%, and Celestica retreated 1.4%.