Futures Fall as Israeli Attacks on Iran Dampen Risk Appetite

Futures tied to Canada's main stock index declined on Friday as investors rushed to safe-haven assets following Israel's widescale strikes against Iran.

The TSX Composite Index advanced 91.59 points to close Thursday at 26,615.75, yet another record high.

Futures were off 0.4% Friday.

The Canadian dollar demurred 0.27 cents to 73.27 cents U.S.

Israel said it targeted nuclear facilities and ballistic missile factories to prevent Tehran from building an atomic weapon. Iran retaliated by launching 100 drones.

The heightened tensions in the oil-rich Middle East sent crude prices soaring more than 7%.

Gold prices also rose to a near two-month high, while copper prices fell.

U.S. Treasury Secretary Scott Bessent said earlier this week he expects to attend the G7 meeting in Canada with President Donald Trump and meet with Prime Minister Mark Carney.

In corporate news, Dundee Precious Metals will acquire U.K.'s Adriatic Metals in a cash-and-stock deal valued at $1.25 billion, the mining companies said on Friday.

Economically speaking, it’s a busy day, with reports of manufacturing sales decreasing 2.8% in April, the third consecutive monthly decline, driven largely on lower sales of petroleum and coal products, motor vehicles, and primary metals.

Excluding the petroleum and coal product subsector, total manufacturing sales were down 1.8%.

What’s more, wholesale sales fell 2.3% to $84.0 billion in April.

Finally, new motor vehicle sales totaled 195,659 in April, increasing 11.3% from one year earlier. Gains were widespread, with all provinces observing a higher number of units sold. April represented the month with the highest sales on record in dollar terms, at nearly $10.8 billion.

ON BAYSTREET

The TSX Venture Exchange eked up 0.27 points Thursday to 721.79.

ON WALLSTREET

U.S. stock futures tumbled early Friday after Israel launched a wave of airstrikes on Iran, pushing energy prices higher and adding another complication at a time of heightened geopolitical tensions.

Futures for the Dow Jones Industrials toppled 424 points, or 1%, to 42,566.

Futures for the S&P 500 index sank 57 points, or 0.9%, to 5,992.50.

Futures for the NASDAQ swooned 262 points, or 1.2%, to 21,670.50.

Oil and defense stocks were higher. Exxon and Chevron added nearly 3% apiece in early trading. Lockheed Martin and RTX Corp were up more than 4%.

Stocks were on track for gains on the week before Friday’s selloff. Heading into the session, the S&P was up nearly 0.8% for the week and less than 2% from an all-time high.

The market drop happened as Israel’s defense minister Israel Katz declared a special state of emergency following an Israeli attack on Iran. Two U.S. officials said that there is no U.S. involvement or assistance.

President Donald Trump, in a Friday morning post on his social media site Truth Social, warned Iran to come to the negotiating table.

“There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacks being even more brutal, come to an end. Iran must make a deal, before there is nothing left, and save what was once known as the Iranian Empire,” Trump wrote. “No more death, no more destruction, JUST DO IT, BEFORE IT IS TOO LATE.”

Trump said in a separate early morning post that he is giving Iran “perhaps, a second chance” to strike a nuclear deal. “Two months ago I gave Iran a 60-day ultimatum to ‘make a deal.’ They should have done it! Today is day 61,” he wrote.

In Japan, the Nikkei 225 index docked 0.9% Friday, while in Hong Kong, the Hang Seng handed over 0.6%

Oil prices jumped $5.17 to $73.21 U.S. a barrel.

Gold prices spiked $41.30 to $3,443.70 U.S. an ounce.