TSX futures flat as US-Iran stalemate keeps investors cautious

Kitco Media
By Reuters
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Reuters
TSX futures flat as US-Iran stalemate keeps investors cautious teaser image

Aug 11 (Reuters) - Futures tied to Canada's main stock index were flat on Tuesday as investors weighed the lack of meaningful progress toward ending ​the U.S.-Iran conflict and awaited key U.S. inflation data ‌due later this week.

September futures on the S&P/TSX index were up 0.07% at 07:03 a.m. ET (1102 GMT).

U.S. President Donald Trump on Monday responded to Iran's conditions ​for a peace deal with his own demands that Iran ​pay compensation for people killed in wars, attacks and ⁠protests, in a rhetorical escalation likely to complicate efforts to reopen the ​Strait of Hormuz.

Brent crude futures rose to more than $89 a barrel as ​ongoing disruption to Middle East energy flows and fading hopes for a peace deal heightened concern over global oil supplies.

Higher oil prices have supported Canada's energy ​sector (.SPTTEN), which is up 40.5% this year. However, worries that a ​prolonged supply disruption could fuel inflation and muddy the outlook for monetary easing ‌kept ⁠broader risk appetite in check.

Canada's main stock index (.GSPTSE), closed at record high levels on Monday, extending last week's gains amid expectations for lower U.S. borrowing costs following soft jobs data and upbeat corporate earnings.

U.S. inflation figures ​due on Wednesday ​could offer further ⁠clues on the Federal Reserve's policy path.

Among other commodities, gold prices fell on the day after hitting ​a more than two-month high earlier in the session.

Barrick ​Mining (ABX.TO), ⁠said it had appointed Sebastiaan Bock as chief executive officer for its Rest of World division. The stock fell 6.5% on Monday after the company ⁠posted ​second-quarter profit below analyst estimates.

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Reporting by Ragini Mathur in Bengaluru; Editing by Sahal Muhammed

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