CANADA STOCKS-Futures dip as mixed signals on Middle East war keep investors on edge
March 26 (Reuters) - Futures linked to Canada's main stock index edged lower on Thursday, as investors remained wary amid conflicting signals from the U.S. and Iran on the Middle East war.
June futures on the S&P/TSX composite index SXFcv1 were down 0.8% as of 06:20 a.m. ET (1020 GMT).
U.S. President Donald Trump said Tehran wanted to "badly" strike a deal to end the war, contradicting the Iranian foreign minister, who said his country was reviewing Washington's proposal but had no intention to hold talks.
The mixed signals kept market participants on edge, as prospects for flows being restored through the key Strait of Hormuz remained unclear.
Crude oil climbed about 2% on concerns that prolonged fighting in the Middle East could further disrupt energy supplies.
Meanwhile, gold slipped on expectations that the U.S. Federal Reserve could hike rates this year as higher oil prices threaten to spike inflationary pressures. GOL/
Traders expect the Bank of Canada to keep rates unchanged at its April meeting, with markets now pricing in nearly three hikes by year-end, LSEG data shows.
However, the conflict-driven rise in oil prices, with no clear end to the war in sight, could complicate central banks' interest rate outlook.
On Wednesday, the TSX ended higher for a third straight session, marking its strongest close since March 17, on signs of diplomatic progress in the Middle East, though the optimism was short-lived.
Among individual movers, eyes will be on retailer Alimentation Couche-Tard ATD.TO after J.P.Morgan initiated coverage on the stock with an "overweight" rating, and telecom firm Cogeco Communications CCA.TO after TD Cowen downgraded it to "hold" from "buy".
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