Futures Gain on Middle East Suspense
Futures linked to Canada's main stock index edged higher on Friday as the threat regarding U.S. military involvement in the Israel-Iran conflict appeared to have been forestalled for now.
The TSX Composite Index reversed 53.85 points to close Thursday at 26,506
September futures eked up 0.2% Friday.
The Canadian dollar sank 0.03 cents to 72.99 cents U.S.
The White House said on Thursday President Donald Trump will decide on whether to join Israel in the war in the next two weeks.
Diplomatic efforts are also underway, with the UK, French and German delegates scheduled to meet Iranian officials in Geneva later in the day.
In other major developments, Prime Minister Mark Carney said on Thursday Canada could increase counter tariffs on U.S.-produced steel and aluminum if he does not reach a broader trade deal with Trump within 30 days.
Earlier this week, Trump and Carney agreed to make a deal in 30 days that could possibly resolve a trade conflict triggered by U.S. tariffs and the subsequent Canadian counter duties.
The economic calendar is a busy one Friday, with retail sales hiking 0.3% to $70.1 billion in April.
The new housing price index decreased by 0.2% percent in May from -0.40% in April.
Statistics Canada also reported its Industrial Product Price Index declined 0.5% month over month in May and increased 1.2% year over year. Its Raw Materials Price Index fell 0.4% month over month and declined 2.8% year over year.
ON BAYSTREET
The TSX Venture Exchange fell 2.67 points Thursday to 715.97.
ON WALLSTREET
Stock futures were higher on Friday, with investors monitoring conflict in the Middle East between Iran and Israel, and potential direct U.S. involvement.
Futures for the Dow Jones Industrials gained 62 points, or 0.2%, to 42,574.
Futures for the S&P 500 index eked up eight points, or 0.2%, to 6,042.25
Futures for the NASDAQ tacked on 41.75 points, or 0.7%, to 21,987.
For the week, the S&P 500 is up marginally with a gain of 0.07%. The 30-stock Dow has lost 0.06%, while the NASDAQ has advanced about 1%.
CarMax shares surged about 10% in the pre-market Friday after its first-quarter results topped Wall Street’s expectations.
Investors remain jittery as the conflict between Israel and Iran has yet to cool. President Donald Trump is weighing direct U.S. involvement with a strike on Tehran, with the White House on Thursday saying that he will make a final decision within the next two weeks.
Trump previously called for Tehran’s complete surrender, to which Iran’s supreme leader, Ayatollah Ali Khamenei, labeled the notion “threatening and ridiculous.”
On the economic front, investors will monitor the Philadelphia Fed’s manufacturing survey on Friday morning, followed by the Conference Board’s leading economic indicators reading for May.
In Japan, the Nikkei 225 index surrendered 0.2% Friday, while in Hong Kong, the Hang Seng jumped 1.3%
Oil prices gave up 84 cents to $74.30 U.S. a barrel.
Gold prices faded $42.40 to $3,365.70 U.S. an ounce.
