Futures linked to Canada's resource-driven stock index slid on Tuesday, as the brief relief from U.S. President Donald Trump's five-day pause on strikes against Iran's energy infrastructure faded, with investors still gripped by uncertainty over the war in the Middle East.
The TSX sprang 566.4 points, or 1.8%, to conclude Monday at 31,883.81.
June futures faded 0.5% Tuesday.
The Canadian dollar lopped 0.03 cents to 72.8 cents U.S.
Oil prices firmed on the day on supply concerns after Iran denied holding talks with the U.S. to end the Gulf war, contradicting Trump's comments that a deal could be reached soon.
Now in its fourth week, the war has crippled key energy infrastructure across the Middle East and brought shipping through the Strait of Hormuz close to a standstill.
With crude among Canada's key exports, the country's stock market is especially vulnerable to shifts in oil prices, and the war has intensified inflation fears by lifting global energy costs.
In corporate news, TransAlta Corp, which owns a fleet of power-generation assets across Canada, will be in focus after National Bank of Canada upgraded its stock to "outperform" from "sector perform".
Jamieson Wellness Inc also drew attention as CIBC initiated coverage with an "outperformer" rating and a price target of $43.00
ON BAYSTREET
The TSX Venture Exchange regained 18.78 points, or 2.1% Monday, to 930.31.
ON WALLSTREET
U.S. stock futures were little changed on Tuesday morning after the major averages staged a comeback in the previous session, amid renewed hopes that a resolution may be in sight for the U.S.-Iran conflict.
Futures for the Dow Jones Industrials sagged 73 points, or 0.2%, to 46,449.
Futures for the S&P 500 index subtracted 8.25 points, or 0.1%, to 6,626.50.
Futures for the NASDAQ fell 16.25 points, or 0.1%. to 24,391.50.
The major averages all rose more than 1% after President Donald Trump said in a Truth Social post that the U.S. and Iran have held “very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.”
Iranian state media reported that there were no direct talks between the two countries, however. Stocks surged, with the Dow up more than 1,100 points on the day at one point.
On Tuesday morning, traders will watch out for data on the U.S. manufacturing Purchasing Managers’ Index.
In Japan, the Nikkei 225 moved ahead 1.4%, while in Hong Kong, the Hang Seng gathered 2.8%.
Oil prices acquired $2.29 to $90.42 U.S. a barrel.
Gold prices climbed $6.50 to $4,413.80 U.S an ounce.
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