Futures tracking Canada's blue-chip stocks edged up on Thursday, buoyed by higher gold prices and optimism about the Middle East peace deal, while markets priced in a rate hike later this year following the U.S. Federal Reserve's hawkish projections.
The TSX Composite Index reversed 264.47 points to finish Wednesday at 35,125.11
June futures increased 0.2% Thursday.
The Canadian dollar fell 0.14 cents to 70.77 cents U.S.
The Fed's stance rattled investors, with TSX pulling back from its all-time high on Wednesday, further weighed down by declines in resources and industrial stocks.
Meanwhile, oil prices extended losses on Thursday, with Brent crude trading near $77 a barrel, after Washington and Tehran signed an interim agreement to end the war, reopen the Strait of Hormuz and waive U.S. sanctions on Iranian oil.
Separately, Canada, Norway, and Sweden will announce a new Prioritized Ukraine Requirements List package to supply Ukraine with U.S. weapons, Sweden's Defence Minister Pal Jonson said in Brussels on Thursday.
On the economic calendar, Statistics Canada reported its Industrial Product Price Index rose 1.2% month over month in May and increased 13.6% year over year.
The Raw Materials Price Index gained 0.7% month over month in May and rose 33.4% year over year.
ON BAYSTREET
The TSX Venture Exchange lost 18.82 points, or 1.9%, to 967.12.
ON WALLSTREET
U.S. stock futures rose on Thursday, with traders looking to recover after the Federal Reserve indicated the possibility of a rate hike this year — sparking a selloff in equities during the previous session.
Futures for the Dow Jones Industrials moved higher 122 points, or 0.2% Wednesday to 52,066.
Futures for the S&P 500 index gained 50.75 points, or 0.7%, to 7,543.25.
Futures for the NASDAQ Composite jumped 416.5 or 1.4%, to 30,415.25.
Intel led chip stocks higher, rising 9% after President Donald Trump said the company will partner with Apple on designing chips in the U.S. Fellow semiconductor names such as Nvidia was higher 1% and Micron Technology grew more than 4%.
Policymakers’ “dot plot” revealed that several Fed officials now see interest rates increasing in 2026.
The median estimate for the year-end interest rate now stands at 3.8%, up from 3.4% in prior projections from March, suggesting that at least one rate hike could be in the picture in 2026.
Complicating the forecast was Warsh’s decision to abstain from submitting a rate forecast.
In Japan, the Nikkei 225 advanced 1.7% Thursday, while in Hong Kong, the Hang Seng slid 1.6%.
Oil prices slid $1.50 to $75.29 U.S. a barrel.
Gold prices tumbled $119.00 to $4,262.40 U.S an ounce.
