TSX futures up as oil rises, but rising Middle East tensions remain in focus

Kitco Media
By Reuters
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Reuters
TSX futures up as oil rises, but rising Middle East tensions remain in focus teaser image

June 1 (Reuters) - Futures tracking Canada's resources-heavy index inched higher on Monday, tracking higher crude oil prices after reports of fresh hostilities ​in the Gulf, though signs of no end to ‌the conflict kept broader risk appetite in check.

June futures on the S&P/TSX index were up 0.1% at 6:06 a.m. ET (1006 GMT), mirroring similar ​gains on Wall Street.

Oil prices rose more than 3% after Iran ​and the U.S. traded strikes and Israel ordered troops to ⁠move further into Lebanon in its battle with Tehran-backed Hezbollah.

Energy (.SPTTEN), has ​been the best-performing sector in the TSX this year, clocking a ​more than 35% jump as of last close, benefiting from higher crude oil prices.

Gold prices were lower against a firmer dollar, while silver prices were slightly ​higher. Materials and mining stocks make up almost 17% of ​the TSX, the third-largest sector behind financials and energy, according to data compiled ‌by ⁠LSEG.

The benchmark TSX (.GSPTSE), clocked a second straight monthly gain in May, taking the index to record highs and closing in on the 35,000 points mark.

Canadian government bond yields also edged lower, with the ​one on the ​10-year note ⁠briefly hitting its lowest in over seven weeks.
Focus would be on readings of U.S. and domestic manufacturing ​activity due later in the day, and a U.S. jobs ​report slated ⁠for the end of the week.

Among single stocks to look out for, brokerage Canaccord Genuity upgraded its rating on Wesdome Gold ⁠Mines (WDO.TO), ​to "buy" from "hold".

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Reporting by Shashwat Chauhan in Bengaluru; Editing by Sahal Muhammed

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