TSX futures dip as investors assess Middle East developments

Kitco Media
By Reuters
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Reuters
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June 4 (Reuters) - Canada stock futures dipped on Thursday, as oil prices eased after a ceasefire deal ​between Israel and Lebanon, while investors looked ahead to a ‌key payrolls report on Friday.

June futures on the S&P/TSX index were down 0.1% at 6:23 a.m. ET (1023 GMT).

Israel and Lebanon agreed to a ceasefire, raising hopes for a de-escalation ​between Washington and Tehran, even as Iran struck Kuwait and ​U.S. forces hit near the Strait of Hormuz, underscoring continuing ⁠tensions in the months-long conflict.

Oil prices slipped about 1% following the news.

Spot ​gold and silver rose 0.7% and 0.9%, respectively, supported by a weaker ​dollar and easing concerns over inflation and interest rate hikes.

Focus will be on Friday's domestic and U.S. payrolls reports for clues on the health of the labor market.

Canada's ​benchmark S&P/TSX Composite Index (.GSPTSE), on Wednesday pulled back from record highs, ​with technology and metal-mining shares leading declines.

Meanwhile, Canada's services economy expanded at a modest ‌pace in ⁠May as the Middle East conflict raised economic uncertainty and higher fuel prices contributed to the fastest increase in operating costs in four years, S&P Global's Canada services PMI data showed on Wednesday.

Canada will extend steel tariff-rate quotas ​and tariff relief ​on certain U.S. ⁠steel and aluminum imports by one year, Finance Minister François-Philippe Champagne said on Wednesday, citing the need to ​shield workers from global excess capacity and give the ​industry longer-term ⁠certainty.

Canadian power producer TransAlta Corp (TA.TO), said on Wednesday it will acquire two natural gas-fired peaking facilities near Denver, Colorado, from Blackstone (BX.N), for about $1 billion, strengthening ⁠its ​presence in the Western U.S. power market.

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Reporting by Tharuniyaa Lakshmi in Benglauru; Editing by Shailesh Kuber

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