(Reuters) – Futures for commodity-heavy Canada’s main stock index slipped on Tuesday as a fall in bullion prices overshadowed a rise in crude prices on growing prospects of more Western sanctions on Russia over its invasion of Ukraine.
June futures on the S&P/TSX index were down 0.1% at 7:00 a.m. ET.
Spot gold edged 0.2% lower as higher U.S. Treasury yields and expectations of aggressive interest rate hikes by the Federal Reserve dimmed its appeal. [GOL/]
Oil climbed over 1% on concerns over tighter global supply as the United States and Europe planned new sanctions to punish Russia over alleged war crimes in Ukraine.[O/R]
An EU source told Reuters the European Commission is to propose new sanctions including a ban on imports of coal, rubber, chemicals and other products from Russia worth up to 9 billion euros a year.
While the geopolitical tensions has rattled risk appetite, it has spurred a rally in commodity stocks which helped the resources-heavy TSX index outperform many of its global peers with a 4.1% gain so far this year.
The Toronto Stock Exchange’s S&P/TSX composite index ended 0.6% higher at 22,085.60 on Monday. [.TO]
Dow e-minis were down 79 points, or 0.23%, at 7:00 a.m. ET, while S&P 500 e-minis were down 9.75 points, or 0.21%, and Nasdaq 100 e-minis were down 31 points, or 0.2%. [.N]
TOP STORIES [TOP/CAN]
Canada’s Liberals find themselves in a bind ahead of this week’s budget: the economy has recovered from the pandemic, yet Prime Minister Justin Trudeau has pledged billions in new stimulus, a political poker chip that could further torch runaway inflation.
Lion Electric Co received an order for 50 all-electric LionC school buses from Autobus Campeau in the province of Quebec.
ANALYST RESEARCH HIGHLIGHTS [RCH/CA]
Mcloud Technologies Corp: Alliance Global Partners cuts PT to C$5.50 from C$6.50
Osisko Gold Royalties Ltd: Scotiabank cuts target price to C$22.50 from C$26
COMMODITIES AT 7:00 a.m. ET
Gold futures: $1,927.6; -0.2%
US crude: $104.51; +1.2%
Brent crude: $108.7; +1.1%
MAJOR U.S. ECONOMIC DATA DUE ON TUESDAY
0830 International trade for Feb : Expected -$88.5 bln; Prior -$89.7 bln
0945 S&P Global Services PMI Final for March : Prior 58.9
0945 S&P Global Composite Final PMI for March : Prior 58.5
1000 ISM N-Manufacturing PMI for Mar : Expected 58.4; Prior 56.5
FOR CANADIAN MARKETS NEWS, CLICK ON CODES:
TSX market report [.TO]
Canadian dollar and bonds report [CAD/] [CA/]
Reuters global stocks poll for Canada
Canadian markets directory
($1= C$1.25)
(Reporting by Devik Jain in Bengaluru; Editing by Shailesh Kuber)
