March 16 (Reuters) - Futures tracking Canada's resource-heavy stock index inched up on Monday, as investors assessed the impact of potential inflation pressures from rising crude prices amid the ongoing Middle East conflict, while prices of precious metals eased.
March futures on the S&P/TSX composite index were up 0.3% as of 07:02 a.m. ET, while futures tracking Wall Street's main indexes were mixed.
The spotlight will be on the materials sector (.GSPTTMT), which includes stocks of Canadian miners, as silver tumbled 4%, copper fell more than 1% and gold also edged down.
Investors remained cautious as strikes on energy infrastructure along with the blockade of the Strait of Hormuz kept oil prices elevated, pushing Brent crude futures above $105 a barrel. Meanwhile, U.S. President Donald Trump's efforts to assemble a coalition to secure safe passage fell short of providing comfort.
The spike in prices has revived concerns about the inflationary impact on the global economy, with central banks across the world reassessing their monetary policies.
The S&P/TSX composite index (.GSPTSE), closed at its lowest level since February 12 on Friday, marking its second consecutive weekly decline. The Canadian benchmark has now retreated 5.8% from its record closing high on March 2.
Investors will closely watch comments from Bank of Canada policymakers at their March 17–18 meeting for clues on how the central bank plans to navigate the situation, even though Canada is more insulated than its peers because it is a net oil exporter.
Energy Minister Tim Hodgson said on Friday that the government was also working with producers and refineries to ensure Canada could deliver the full 23.6 million barrels pledged to the IEA, while preparing to expand natural gas exports in the coming months.
Brokerage Jefferies raised its price targets across several Canadian energy companies, including Cenovus (CVE.TO), Suncor (SU.TO), and Canadian Natural Resources (CNQ.TO), reflecting improved cash-flow expectations and firmer commodity assumptions.
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Reporting by Rashika Singh in Bengaluru; Editing by Diti Pujara
