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CANADA STOCKS-TSX futures fall as Middle East tensions weigh on sentiment

ReutersJun 12, 2025 10:00 AM

- Futures linked to Canada's main stock index fell on Thursday as optimism over tame U.S. inflation figures waned, while escalating tensions in the Middle East prompted investors to adopt a more cautious stance.

June futures on the S&P/TSX index SXFcv1 were down 0.3% at 05:30 a.m. ET (09:30 GMT).

The Toronto Stock Exchange's S&P/TSX composite index had reached a record closing high on Wednesday after U.S. consumer prices rose less than expected in May, boosting prospects for Federal Reserve interest rate cuts in coming months.

Geopolitical concerns dampened investor sentiment on Thursday after U.S. President Donald Trump announced some U.S. personnel were being relocated from the Middle East amid rising tensions with Iran.

In commodities, gold prices rose to a one-week high.

Copper prices also climbed, while oil prices eased, reversing earlier gains made during Asian trading.

Markets faced additional uncertainty as Trump said on Wednesday that he was willing to extend the deadline for trade talks, although he deemed it unlikely, with the U.S. planning to send offer letters to countries in the coming weeks.

This week's focus centered on U.S.-China trade talks, which resulted in a deal to restore their truce. Despite the progress, longstanding tensions persisted as some tariffs remained in place.

With Trump's July 8 tariff pause deadline approaching, investors are concerned about whether other countries can secure trade agreements with the U.S.

In corporate news, Ivanhoe Mines IVN.TO said it had resumed underground mining in part of its Kakula copper mine in the Democratic Republic of Congo, which had been closed due to seismic activity, but lowered its output forecast for the year.

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report .TO

Reuters global stocks poll for Canada EQUITYPOLL1, EPOLL/CA

Canadian markets directory CANADA

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