Canada's stock index futures inched up on Monday after Iran and the United States agreed to pause recent hostilities in the Middle East, though caution ahead of the USMCA review and weakness in precious metals weighed on sentiment.
The TSX Composite Index climbed 129.79 points to close Friday at 34,980. On the week, the index increased more than 122 points, or 0.35%.
September futures rose 0.16% Monday.
The Canadian dollar backpedaled 0.04 cents at 70.43 cents U.S.
Iran and the United States agreed to renew talks regarding their dispute over the Strait of Hormuz, a U.S. official said on Sunday, raising hopes of saving an interim peace deal that was under pressure from days of tit-for-tat strikes.
Key domestic data this week include April GDP and S&P Global's June manufacturing activity survey.
Meanwhile, traders expect the Bank of Canada to keep interest rates on hold through most of the year but see an about 30% chance of a 25-basis-point rate hike in December.
Investors will also closely watch for U.S. data, such as the June non-farm payrolls report and factory activity surveys, for cues on monetary policy outlook.
ON BAYSTREET
The TSX Venture Exchange nicked ahead 0.46 points to 895.84. The index was down on the week, however, 59 points, or 6.2%.
ON WALLSTREET
Stock futures rose Monday, with tech rebounding after a tough week. Investors also weighed a pause in hostilities between the U.S. and Iran.
Futures for the Dow Jones Industrials slid 44 points, or 0.1%, to 52,298.
Futures for the S&P 500 index weakened 33 points, or 0.5%, to 7,390.25.
Futures for the NASDAQ Composite shed 332.75 points. or 1.1%, to 29,392.50.
This week will mark the end of June trading. As of Friday’s close, the S&P 500 is down 3% for the month, while the NASDAQ has fallen more than 6%. The Dow, meanwhile, has climbed more than 1%.
Arm led the way in premarket trade, rising 1.9%, as Marvell added 1.6%, while Intel advanced 1.1%.
SpaceX was also set to open 2% higher after NASDAQ announced last week that Elon Musk’s satellite company will be fast-tracked onto the NASDAQ next month.
Comcast shares, meanwhile, rallied 23% after it said it will spin off its media and tech businesses into two publicly traded companies. The separation is expected to be completed in about a year.
The U.S. and Iran agreed Sunday to pause hostilities and allow commercial vessels to transit the Strait of Hormuz freely, following a weekend of military exchanges that threatened to derail negotiations aimed at ending their conflict.
In Japan, the Nikkei 225 moved forward 0.2% Monday, while in Hong Kong, the Hang Seng stormed higher 1.6%.
Oil prices tallied 73 cents to 69.96 cents U.S. a barrel.
Gold prices dulled $53.40 to $4,042.90 U.S an ounce.
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