Futures for Canada's main stock index edged higher on Tuesday as investors drew some comfort from news that the U.S. had paused a planned attack following Tehran’s peace proposal, raising prospects of a deal nearing.
The TSX Composite Index slumped 434.92 points, or 1.3%, to finish Friday at 33,833.35. On the week, the index dropped 244 points, or 0.72%.
June futures were up 0.3% Tuesday.
The Canadian dollar sank 0.07 cents to 72.71 cents U.S.
On the economic calendar, Statistics Canada reports, the total value of building permits issued in Canada increased $1.3 billion (+10.3%) in March to $13.5 billion, while the Consumer Price Index increased 2.8% year over year in April, up from an increase of 2.4% in March. On a seasonally adjusted monthly basis, the CPI rose 0.3% in April.
Lastly, April’s new housing price index decreased 0.4%, compared to a drop in March of 0.2%.
ON BAYSTREET
The TSX Venture Exchange erased 26.26 points, or 2.6%, to 988.81. On the week, the decrease was 8.5 points, or 0.84%.
ON WALLSTREET
U.S. index futures fell Tuesday as a selloff in chip stocks, which have led the A.I.-driven bull market, continued.
Traders also kept an eye on the oil market following President Donald Trump’s cancellation of planned attacks on Iran, as well as bond yields hovering near multi-year highs, which threatened to put more pressure on the U.S. consumer.
Futures for the Dow Jones Industrials fell 102 points, or 0.2%, to 49,666
Futures for the S&P 500 dipped 34.75 points, or 0.5%, to 7,391.
Futures for the NASDAQ plummeted 243 points, or 0.8%. to 28,853.
Shares of Micron were down 2% in premarket trading Tuesday, set for its fourth-straight day of declines on concern the A.I. run in memory chipmakers in particular has gone too far, too fast.
Micron is still up more than 138% this year. The stock fell on Monday after peer Seagate Technology fell 7% after warning about keeping up with demand. Seagate was down another 3% on Tuesday.
Crude prices were down Tuesday after President Donald Trump announced late Monday that he was calling off a plan to attack Iran after the heads of three regional powers in the Middle East asked him to “hold off.”
West Texas Intermediate futures shed 0.4% to $103.81 per barrel in early trading. Brent crude lost 1% to $110.96. Trump’s post also helped the S&P 500 and NASDAQ recover some losses late in the session Monday, though they still ended lower for a second day in a row.
In Japan, the Nikkei 225 dipped 0.4% Tuesday, while the Hang Seng index in Hong Kong gained 0.5%.
Oil prices retreated 48 cents to $108.18 U.S. a barrel.
Gold prices dulled $11.50 to $4,546.50 U.S an ounce.
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