Canadian Stock Futures Rise Amid Geopolitical Concerns
Futures linked to Canada’s main stock market index saw an uptick on Friday as investors weighed the potential implications of the ongoing conflict between Iran and Israel, which might see U.S. intervention. At 13:34 Turkish time, the S&P/TSX 60 index standard futures contract had increased by 4 points or 0.3%.
On Thursday, the Toronto Stock Exchange’s S&P/TSX composite index fell by 53.85 points or 0.2%, closing at 26,506.00. With U.S. markets closed due to a holiday, trading volumes remained subdued. Energy stocks experienced gains in alignment with a rise in oil prices, driven by concerns over how the Israeli-Iranian conflict could impact supply flows in the Middle East, particularly around the strategically crucial Strait of Hormuz near Iran.
Shares of Algoma Steel Group (TSX:ASTL) also saw an increase, bolstered by Canadian Prime Minister Mark Carney’s announcement of impending tariff measures designed to address perceived unfair trade practices in the steel and aluminum sectors.
US Stock Futures Decline as Geopolitical Tensions Persist
U.S. stock index futures dipped, ending the week on a cautious note as investors continued to monitor the escalating Israeli-Iranian conflict, now in its second week. At 13:44 Turkish time, Dow Jones Futures were down by 91 points or 0.2%, S&P 500 Futures dropped 14 points or 0.2%, and Nasdaq 100 Futures fell by 50 points or 0.2%.
Wall Street remained closed on Thursday for the Juneteenth holiday, leading investors to avoid making significant bets. The S&P 500 has seen a marginal increase of 0.1% so far this week, the 30-share Dow is down 0.1%, while the Nasdaq has advanced by approximately 1%.
White House: Trump to Decide on Iran Action in Two Weeks
According to a White House statement on Thursday, President Donald Trump is expected to make a decision regarding direct U.S. involvement in the Israeli-Iranian conflict within the next two weeks. The President is considering the possibility of nuclear discussions with Tehran despite ongoing hostilities.
While Trump has publicly considered a direct attack on Iran, he has also emphasized potential diplomatic engagements with the Islamic Republic. The intensifying conflict has kept Wall Street largely risk-averse over the past week amid fears of a broader Middle Eastern conflict. The resulting spike in oil prices has raised concerns about inflation driven by increased energy costs.
Oil and Gold Market Movements
Brent Crude Oil Declines
Brent crude oil futures experienced a decline on Friday following White House statements, though the contract is poised for a third consecutive week of gains. At 13:47 Turkish time, Brent crude futures—a key pricing benchmark for much of the world’s oil market—fell by 2.6% to $76.77 per barrel. U.S. West Texas Intermediate (WTI) crude futures for August delivery rose to $73.69 per barrel.
Oil prices had risen nearly 3% on Thursday, though trading volumes were low due to the closure of U.S. markets.
Gold Prices Edge Lower
Gold prices saw a slight decline, reflecting improved risk sentiment following indications from the White House that an immediate U.S. military strike on Iran was not forthcoming. Earlier in the week, the yellow metal was pressured by a stronger dollar, supported by hawkish statements from the Federal Reserve. The dollar eased slightly on Friday but is set for weekly gains.
Spot gold fell by 0.4% to $3,356.66 per ounce at 13:52 Turkish time, while gold futures for August delivery decreased by 1.0% to $3,373.17 per ounce.
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