TSX futures subdued as investors weigh US tariffs, await details on looming Iran sanctions

Kitco Media
By Reuters
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Reuters
TSX futures subdued as investors weigh US tariffs, await details on looming Iran sanctions teaser image

Aug 24 (Reuters) - Futures tracking Canada's commodity-heavy stock index were subdued on Monday as investors took stock of new U.S. tariffs on Canadian goods and awaited details ​on United States' threat to impose sanctions against Iran.

September futures on ‌the S&P/TSX index were rose 0.1% to 2,147.70 points at 5:41 a.m. ET.

The U.S. imposed 50% tariffs on some Canadian goods on Saturday after the two longstanding allies failed to secure ​a trade agreement, with both sides blaming each other for the ​collapse of talks.

The new duties add to existing U.S. tariffs ⁠on steel, lumber and autos which have taken major hit in the ​last 18 months. According to trade experts, the tariffs open up some already ​vulnerable sectors to potential severe damage and could lead to job losses and business closures.

Prime Minister Mark Carney said he had suspended trade negotiations and Canada would retaliate "dollar for ​dollar" on the new tariffs.

Separately, U.S. Treasury Secretary Scott Bessent, who is ​set to hold a press conference at 2 p.m. EDT (1800 GMT), has threatened to roll out "the ‌greatest ⁠financial offensive ever" against Iran. President Donald Trump also threatened to impose sanctions on Iran's trading partners.

Oil prices slipped, as investors took profits ahead of the expected announcement. Brent crude futures fell 1.4%, while West Texas Intermediate crude ​shed 2%.

Gold prices ​hit a three-month ⁠high against a subdued dollar, as investors also turned their focus to key U.S. inflation data due later this week along with ​Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole ​symposium in ⁠Wyoming.

Spot gold gained 0.7%, while silver shed 0.2%.

Canada's benchmark index recorded a 0.3% weekly loss on Friday as investors weighed lingering strains in global bond markets after ⁠a U.S. Treasury ​intervention provided brief relief from selling driven ​by inflation and fiscal concerns.

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Reporting by Sudeshna Ghoshal in Bengaluru

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