TSX futures rise on gold gains, Middle East deal optimism

Kitco Media
By Reuters
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Reuters
TSX futures rise on gold gains, Middle East deal optimism teaser image

June 18 (Reuters) - 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.
September ​futures on the S&P/TSX index were up 0.2% ​at 6:43 a.m. ET (1043 GMT).

Spot gold and silver ⁠rose 0.1% and 0.2%, respectively, as lower oil prices ​following the U.S.-Iran ceasefire deal helped temper inflation fears and ​counter the Fed's hawkish stance.

The Fed held interest rates steady on Wednesday, but policymakers expect a hike in borrowing costs later this ​year amid growing concerns about inflation being above the ​central bank's target.

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 Prioritised Ukraine Requirements List (PURL) package to supply Ukraine with U.S. weapons, Sweden's Defence Minister Pal Jonson said ⁠in ​Brussels on Thursday.

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Reporting by Tharuniyaa Lakshmi in Bengaluru

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