Canadian Futures Hover Near Flat

The S&P/TSX Composite Index wavered around 36,000 on Friday, as major banks posted losses while miners and tech stocks gained. Meanwhile, crude oil prices rose in a volatile session amid persistent US-Iran tensions after President Trump stated the US no longer needs a deal with Iran, dampening hopes for a diplomatic resolution. Major banks were subdued as rising oil prices heightened inflation concerns amid expectations for a BoC rate hike before year-end. Conversely, Canadian Natural, Suncor, and Imperial Oil edged higher. Miners gained as gold prices rose, with Agnico Eagle, Barrick, and Franco-Nevada up about 1% each. Most tech stocks posted gains, rebounding after recent losses triggered by Nvidia’s leadership crisis which injected uncertainty into the AI trade and the broader global technology sector. Shopify rose 2%, and Constellation Software added more than 1%. In contrast, Celestica tumbled 6%.

Futures tracking Canadian equities were muted on Friday as oil prices were nearly flat and gold edged higher, while Jensen Huang’s resignation as Nvidia CEO continued to weigh on the technology sector. Global stocks were subdued after a turbulent week dominated by news of Huang’s alleged relationship with a suspected Chinese spy, which led to his resignation and created uncertainty in the AI trade and the broader technology sector. Shopify inched lower in US pre-market trading, while Celestica rose. Meanwhile, oil prices hovered near the flatline amid uncertainty over US-Iran diplomacy prospects. US-listed Canadian energy producers gained in pre-market trading, while major banks were mixed amid energy-driven inflation worries. Markets expect the BoC to raise interest rates again before year-end, ahead of fresh inflation data due next week. The S&P/TSX Composite Index is set to rise nearly 2% on the week.

The S&P/TSX Composite Index fell 0.7% to close at 36,137 on Thursday amid losses in the banking and mining sectors. Miners posted losses as gold prices fell sharply, pressured by a stronger US dollar, expectations of further Fed tightening, and rising oil prices. Agnico Eagle lost 4.1%, while Barrick fell 3% and WPM shed 2.7%. Franco-Nevada edged 0.4% lower after signaling its annual earnings would land at the midpoint of earlier guidance rather than the top half. Meanwhile, financials declined as rebounding oil prices amid escalating US-Iran tensions revived inflation fears and reinforced expectations of a restrictive monetary policy stance from both the BoC and the Fed. Great-West Lifeco lost 1.7% and Manulife Financial fell 1.1% . In technology, Shopify fell 1.5% amid the Nvidia crisis, which increased uncertainty in the sector. Celestica gained 4.8%, extending an 8.4% surge from the prior session driven by recent investor-day commentary and strong third-quarter results.