Futures tracking Canada's blue-chip stocks edged higher on Tuesday as investors took comfort from signs of de-escalation in hostilities in the Middle East, while keeping an eye on the Bank of Canada's rate decision due on Wednesday.
The TSX Composite Index recovered 59.57 points, off its highs of the day, to wind up Monday at 34,473.02.
June futures sprang 0.4% Tuesday.
The Canadian dollar nosed ahead 0.01 cents to 71.77 cents U.S.
Iran and Israel halted attacks on each other, but caution lingered as talks between Washington and Tehran have yet to yield a lasting deal and the Strait of Hormuz remains closed.
Back home, investors awaited a Bank of Canada interest rate decision on Wednesday. The central bank was expected to leave its benchmark interest rate on hold at 2.25% for a fifth straight meeting, according to a majority of economists polled by Reuters.
Meanwhile, Prime Minister Mark Carney is pushing to diversify trade beyond the United States, but Canada's appeal to global partners still hinges on tariff-free access to the U.S. market through the USMCA agreement.
On the economic slate, Statistics Canada reports this morning that in April, Canada's merchandise exports increased 1.6%, while imports edged up 0.3%. As a result, Canada's merchandise trade surplus with the world widened from $1.8 billion in March to $2.7 billion in April.
ON BAYSTREET
The TSX Venture Exchange ducked back 9.44 points, or 1%, Monday to 947.17.
ON WALLSTREET
U.S. stock futures rose early Tuesday as chip stocks rebounded for a second day from last Friday’s rout and oil prices pulled back on hopes a U.S.-Iran deal is nearing.
Futures for the Dow Jones Industrials popped 153 points, or 0.3%, to 51,009.
Futures for the S&P 500 index grew 36.5 points, or 0.5%, to 7,452.50.
Futures for the NASDAQ Composite shot higher 237 points, or 0.8%, to 29,691.75.
Micron was higher by nearly 4% in early trading, adding to a 10% comeback on Monday. The shares tumbled about 20% in the two days ending last week, including a 13% rout on Friday.
Qualcomm was up 3% in early trading, a second day of gains after falling 11% on Friday,
WTI crude oil shed about 2% to trade under $90 a barrel as President Donald Trump said a deal between the U.S. and Iran could be reached in “two or three days” that opens the Strait of Hormuz “immediately.”
Iran on Monday halted military strikes against Israel, but warned it would resume attacks if Israeli forces continue operations in Lebanon, Tehran’s foreign ministry told the media on Monday. Hours later, Israeli Prime Minister Benjamin Netanyahu said the conflict with Iran and Hezbollah was “not yet over.”
In Japan, the Nikkei 225 recovered 2.2% Tuesday, while in Hong Kong, the Hang Seng dipped 0.4%.
Oil prices dumped $2.21 to $89.09 U.S. a barrel.
Gold prices dropped 80 cents to $4,362.80 U.S an ounce.
