Futures for Canada's main stock index fell on Monday, mirroring declines in global equities as mounting tensions in the Middle East stoked fears of a conflict that could drag on for weeks.
The TSX lost 161.97 points to 34,339.99 Friday. Even so, the index rocketed last week, 1,266 points, or 3.8%.
March futures were down 0.5% Monday.
U.S. and Israeli strikes — and Iranian retaliation — rippled across sectors worldwide, from shipping and aviation to oil, while investors worried that a drawn-out regional war could push energy costs higher and disrupt business in the Gulf region.
U.S. President Donald Trump suggested on Sunday that the conflict with Iran could go on for the next four weeks.
Separately, India and Canada will aim to conclude a free trade pact by the end of this year, Prime Minister Mark Carney said on Monday during his first visit to New Delhi.
The two sides also agreed on a $2.6 billion uranium deal, under which Canada's Cameco will supply the fuel to India to support its nuclear ambitions and to work towards a clean, reliable base load power.
On the economic front, the Markit PMI for February was to be revealed Monday (9:30 EST).
ON BAYSTREET
The TSX Venture Exchange eked up 0.91 points to 1,107.60. Still, that index has improved 107 points, or 11.6%, on the week.
ON WALLSTREET
Stock futures tumbled on Monday after the U.S. and Israel attacked Iran over the weekend, causing oil prices to surge and adding an unstable Middle East to a list of growing worries for equity investors.
Futures for the Dow Jones Industrials stumbled 495 points, or 1%, to 48,505.
Futures for the S&P 500 index collapsed 63.25 points, or 0.1%, to 6,821.75.
Futures for the NASDAQ docked 311.5 points, or 1.3%. to 24,693.25.
The joint U.S.-Israeli strikes killed Supreme Leader Ayatollah Ali Khamenei over the weekend, marking a watershed moment for the Islamic Republic and one of its most consequential episodes since 1979.
President Donald Trump told reporters that U.S. military operations in Iran are “ahead of schedule,” but investors are worried about a prolonged conflict despite those comments.
Iranian officials have vowed a forceful retaliation, raising fears the conflict could spread across the region.
Defense stocks Raytheon, Northrop Grumman and Lockheed Martin were all higher by more than 5% in early trading following the attacks. Energy shares including Exxon Mobil and Chevron were up by about 4% apiece.
But a risk-off mentality sent most stocks lower with tech and banking shares leading the losses. Broadcom led chip stocks lower. Amazon and Alphabet fell. Morgan Stanley and Goldman Sachs were lower.
The geopolitical escalation compounds an already fragile backdrop for stocks. The S&P 500 sold off Friday and finished in the red for February amid renewed turmoil in artificial intelligence and software shares.
In Japan, the Nikkei 225 faded 1.4%, while in Hong Kong, the Hang Seng was off 2.1%.
Oil prices zoomed $4.74 to $71.76 U.S. a barrel.
Gold prices brightened $145.90 to $5,393.40 U.S an ounce.
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