Canadian stock index futures edged higher on Tuesday, as a rally in gold cushioned the falling oil prices after U.S. President Trump suggested the Middle East war may soon wind down, keeping investors wary in the resource-heavy market.
The TSX recovered 105.6 points to close Monday at 33,189.
March futures tacked on 0.4% Tuesday.
Traders will be watching U.S. inflation data and Canada's jobs report due later this week for signals on the monetary policy outlook.
The timing comes as the Bank of Canada faces mounting geopolitical and supply side risks ahead of its March 18 policy decision.
Scotiabank downgraded Air Canada to "sector perform" from "sector outperform" and cut its target price to $21 from $27.
ON BAYSTREET
The TSX Venture Exchange gained 6.39 points Tuesday to 1,063.43.
ON WALLSTREET
Stock futures ticked higher Tuesday as oil prices fell after a wild session as traders kept a close eye on the latest developments out of Iran.
Futures for the Dow Jones Industrials jumped 87 points, or 0.2%, to 46.856.
Futures for the S&P 500 index moved higher 5.75 points, or 0.1%, to 6,806.75.
Futures for the NASDAQ gained 39.75 points, or 0.2%. to 25,030.75.
Oil prices, which had been on a tear of late, fell broadly on Tuesday. West Texas Intermediate futures lost 6% to trade at $89.12 per barrel. Brent crude shed 6.4% to $92.60.
Those moves come after President Donald Trump on Monday evening said, “We’re achieving major strides toward completing our military objective,” reinforcing earlier comments that the military campaign could soon end. Speaking at a press conference at his golf club near Miami, Trump also said, “We are also focused on keeping energy and oil flowing to the world.”
Stocks staged a stunning comeback on Monday from their session lows after Trump told CBS that “the war is very complete, pretty much.” The president also told CBS News that the U.S. is “very far” ahead of his previously stated timeframe of four to five weeks and that he is “thinking about” taking over the Strait of Hormuz.
On Tuesday morning, energy ministers from the Group of Seven nations — namely, Canada, France, Germany, Italy, Japan, the United Kingdom and the U.S. — are set to meet virtually to discuss a potential release of strategic oil reserves.
It comes after G7 finance ministers met to discuss the situation on Monday. In a statement, International Energy Agency Executive Director Fatih Birol — who attended the meeting — said the conflict in the Middle East was “creating significant and growing risks for the market,” but said various options, including freeing up IEA emergency oil stocks, had been discussed.
In Japan, the Nikkei 225 rebounded 2.9% Tuesday, while in Hong Kong, the Hang Seng recovered 2.2%.
Oil prices wilted $6.77 to $88.00 U.S. a barrel.
Gold prices vaulted 96.30 to $5,200.00 U.S an ounce.
Oil Declines, Stocks Rise on Prospect of an Early End to War
