Futures tied to Canada's main stock index slipped on Thursday as signs of rising Middle East tensions soured risk sentiment and drove up crude prices, further stoking inflation worries.
The TSX bid farewell to 150.82 points to wrap up Wednesday at 33,119.83.
March futures slipped 0.1% Thursday.
The Canadian dollar eked higher 0.06 cents to 73.58 U.S.
The surge in oil has hit risk assets globally, with Canada's benchmark index also down 3% from levels seen before the conflict that began on February 28. The information technology sector bore the brunt of selling pressure, while energy outperformed on crude's strength.
Meanwhile, RBC upgraded its rating on `Kinross Gold to "outperform" from "sector perform".
A busy day on the macroeconomic calendar/
Statistics Canada reported building permits increased $607.0 million (+4.8%) to $13.3 billion.
Wholesale trade fell 1.0% in January, on lower sales reported by companies in the motor vehicle and motor vehicle parts and accessories subsector, as well as the mineral, ore and precious metals industry group. and exports decreased 4.7%, while imports were down 1.1%.
As a result, Canada's merchandise trade deficit with the world widened from $1.3 billion in December to $3.6 billion in January.
Motor vehicle sales for January were also due today.
Canada’s labour force index is due for February on Friday.
ON BAYSTREET
The TSX Venture Exchange decreased 13.38 points, or 1.2%, Wednesday to 1,076.16.
ON WALLSTREET
Stock futures were under pressure Thursday as oil prices added to their surge on supply disruption worries while the Iran war continued.
Futures for the Dow Jones Industrials caved 215 points, or 0.5%, to 47,233.
Futures for the S&P 500 index slipped 19.5 points, or 0.3%, to 6,760.
Futures for the NASDAQ ditched 59.75 points, or 0.2%. to 24,923.75.
Late Wednesday, Energy Secretary Chris Wright said the U.S. will release 172 million barrels of oil from the Strategic Petroleum Reserve. It will take about 120 days to deliver the fuel. The announcement comes after President Donald Trump said in an interview that he would tap the reserve.
However, markets remained under pressure as crude prices continued to climb. West Texas Intermediate futures traded 4% higher at around $91 per barrel. Brent crude advanced 5% to roughly $97 and briefly touched $100.
U.S. forces on Tuesday sank 16 mine-laying Iranian ships near the Strait of Hormuz, as oil tanker traffic remains stalled amid threat of Iranian attacks.
Insurance company Chubb was announced as the lead underwriter for a U.S. government-led program to provide insurance to ships attempting to traverse the strait.
Shares of Dick’s Sporting Goods rose 3% after the retailer posted fourth-quarter results that beat analyst expectations.
In Japan, the Nikkei 225 skidded 1% Thursday, while in Hong Kong, the Hang Seng stepped down 0.7%.
Oil prices increased $4.45 to $91.70 U.S. a barrel.
Gold prices gained $6.10 to $5,185.20 U.S an ounce.
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