Futures linked to Canada's resource-heavy stock index fell on Monday as threats to energy infrastructure in the Gulf sent oil prices sharply higher, while declines in gold and silver added further pressure.
The TSX dropped 537.37 points, or 1.7%, Friday to close the week at 31,317.41, caving 1,224 points on the week, or 3.76%.
June futures subsided 1% Monday.
The Canadian dollar gave up 0.04 cents to 72.90 cents U.S.
Investors will monitor transportation headlines after an Air Canada Express CRJ-900 collided with a Port Authority emergency vehicle on the LaGuardia runway late Sunday, killing the pilot and co-pilot and injuring more than a dozen others, according to U.S. authorities.
ON BAYSTREET
The TSX Venture Exchange withered 25.04 points, or 2.7%, to 911.53, a slide of 106 points on the week or 10.5%.
ON WALLSTREET
Stock futures shot higher in a sudden move after President Donald Trump said the U.S. and Iran have held productive talks over the last two days and he was halting any strikes on Iranian power plants and energy infrastructure.
Futures for the 30-stock index popped 1,041 points, or 2.3%, to 46,934.
Futures for the S&P 500 index hiked 140 points, or 2.1%, to 6,699.
Futures for the NASDAQ zoomed 495.50 points, or 2.1%. to 24,597.
“I am pleased to report that the United States of America, and the country of Iran, have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” wrote Trump in a Truth Social post.
Trump’s announcement came as the Iran war entered its fifth week, with tensions escalating over the weekend. Trump had threatened an attack on Iranian power plants if the Strait of Hormuz — a key shipping route for oil and other energy products — isn’t reopened.
Iran responded in turn said it would target U.S. infrastructure, including energy and desalination facilities in the Gulf, if the U.S. carried out its threat.
It was a broad rebound in early trading with cyclical shares like banks and industrials surging as well as tech shares.
JPMorgan Chase and Morgan Stanley were each 2% higher in premarket trading. Caterpillar and Deere added 2% apiece. Nvidia and Apple were also both 2% higher.
Moreover, word came down that Berkshire Hathaway will invest $1.8 billion in Tokio Marine Holdings, extending Warren Buffett’s push into Japan and strengthening ties in the global insurance market.
In Japan, the Nikkei 225 returned from a long weekend to drop 3.5%, while in Hong Kong, the Hang Seng also reversed 3.5%.
Oil prices tumbled $8.06 to $90.17 U.S. a barrel.
Gold prices plummeted $168.10 to $4,406.80 U.S an ounce.
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