Futures linked to Canada's benchmark index ticked lower on Friday, leaving it poised for a third straight weekly decline, as cautious investors continued to monitor an escalating Middle East conflict that has pushed oil prices to record highs.
The TSX staggered another 457.69 points, or 1.4%, to close Thursday at 31,854.98
June futures dumped 0.5% Friday.
The Canadian dollar began the day down 0.03 cents to 72.80 cents U.S.
The U.S. is considering plans to occupy or blockade Iran's Kharg Island to pressure the country into reopening the Strait of Hormuz, an Axios report said, even as Israel and Iran traded fresh attacks on Friday.
Leading European nations, Japan and Canada have issued a joint statement that they are ready to join efforts to secure safe passage for shipping through the crucial waterway, as supply disruptions send crude oil and natural gas prices soaring.
Among individual stocks, Interfor Corp. will rate attention, with CIBC raising the lumber producer's rating to "neutral" from "underperform," and dealership operator AutoCanada, whose rating the brokerage downgraded to "neutral" from "outperform."
Friday is a busy day economically speaking, with January retail trade up 1.1% to $70.7 billion. Sales were up in six of nine subsectors, led by increases at motor vehicle and parts dealers.
February’s new housing price index tacked on 0.3%, in contrast with a 0.4% loss in the prior-year month.
As well, Statistics Canada reported its raw materials price index increased by 0.6% month over month in February and rose 8.6% year over year. while its industrial product price index increased 0.4% month over month in February and gained 5.4% year over year.
ON BAYSTREET
The TSX Venture Exchange dropped 39.45 points Thursday, or 4%, to 936.57.
ON WALLSTREET
Stock futures fell on Friday morning as oil prices resumed their rally following a brief move lower.
Futures for the Dow Jones Industrial index dumped 119 points, or 0.3%, to 46,222.
Futures for the S&P 500 index faltered 22 points, or 0.3%, to 6,638.
Futures for the NASDAQ tumbled 114 points, or 0.5%. to 24,466.
Stocks fell on Thursday but closed well off their lows after Netanyahu said Israel was assisting the U.S. “in intel and other means” to open the Strait of Hormuz. He added that Iran had lost the ability to enrich uranium and produce ballistic missiles, noting the conflict may end faster than many fear.
The stock market could face additional volatility on Friday due to the so-called quadruple witching event — the quarterly expiration of stock options, index options, index futures and single-stock futures that occurs four times a year.
As trillions of dollars in derivatives roll off the board, the event tends to lead to heavier trading volumes and sharper intraday swings thanks to investors rebalancing or unwinding positions.
In Hong Kong, the Hang Seng reversed 0.9%. Markets in Japan were closed for holiday.
Oil prices gave back $1.44 to $94.70 U.S. a barrel.
Gold prices brightened $78.70 to $4,684.00 U.S an ounce.
