Futures linked to Canada's resource-heavy main stock index were flat on Monday with sliding commodity prices offsetting potential gains from improving U.S.-China trade relations.
The TSX hiked 166.79 points to close at 30,353.07. On the week, the index gained 244 points, or 0.8%.
December futures eked up 0.06% Monday.
Top Chinese and U.S. economic officials sketched out on Sunday a trade deal framework for U.S. President Donald Trump and his Chinese counterpart Xi Jinping to decide on later this week in their much-awaited meeting in South Korea.
The prospective deal would pause steeper American tariffs and Chinese rare earths export restrictions, offering some relief to investors who have been navigating tense trade relations between the world's two top economies.
On Friday, the Toronto Stock Exchange's composite index rose as investors shrugged off new trade frictions between the U.S. and Canada.
Trump on Thursday ended trade talks with Ottawa over the tariff-related ad, which Trump said was misleading. On Saturday, he said he was increasing tariffs on Canada by an additional 10% "above what they're paying now".
On matters economic, Statistics Canada reported its housing price index decreased 0.2% in September, compared to a loss of 0.3% in the month before.
ON BAYSTREET
The TSX Venture Exchange subtracted 0.51 points to 963.72. On the week, the index backtracked 1.86 points, or 0.19%.
ON WALLSTREET
Stock futures jumped on Monday after U.S. and China officials cooled tensions over the weekend, laying the groundwork for President Donald Trump and China President Xi Jinping to clinch a trade deal this week.
Futures for the Dow Jones Industrials popped 229 points, or 0.5%, to 47,625.
Futures for the S&P 500 hiked 57.75 points, or 0.9%, to 6,884.75.
Futures for the NASDAQ leaped 332.25 points, or 1.3%, to 25,841.50.
Chipmakers, the sector with the most to lose from tensions with China, led the rally in early trading Monday. Nvidia as well as Broadcom and AMD all gained about 2%. Tesla and Apple added around 1% each.
The framework potentially includes a delay of China’s rare earths restrictions that caused the latest trade flare-up, a spiking of Trump’s threatened 100% tariffs on China that were to start Nov. 1 and a resumption of Chinese purchases of soybeans. The agreement may include a resolution of the TikTok dispute with the U.S. getting a deal for the U.S. version of the social video app.
While investors were encouraged by improving China-U.S. relations, a setback with Canada kept their enthusiasm in check. Trump on Saturday put an additional 10% tariff on Canada imports for not pulling a TV ad featuring former President Ronald Reagan knocking tariffs fast enough.
In Japan, the Nikkei 225 gathered 2.5% Monday, while in Hong Kong, the Hang Seng gained 1.1%.
Oil prices dipped 23 cents to $61.27 U.S. a barrel.
Gold prices faltered $94.40 to $4,043.40 U.S. per ounce.
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