CANADA STOCKS-TSX futures rise on gold gains, Middle East deal optimism

TSX futures up 0.2%

Gold prices climb, oil slips

- Futures tracking Canada's blue-chip stocks edged up on Thursday, buoyed by higher gold prices and optimism about the Middle East peace deal, while markets priced in a rate hike later this year following the U.S. Federal Reserve's hawkish projections.

September futures on the S&P/TSX index SXFcv1 were up 0.2% at 6:43 a.m. ET (1043 GMT).

  • Spot gold XAU= and silver XAG= rose 0.1% and 0.2%, respectively, as lower oil prices following the U.S.-Iran ceasefire deal helped temper inflation fears and counter the Fed's hawkish stance. GOL/

  • The Fed held interest rates steady on Wednesday, but policymakers expect a hike in borrowing costs later this year amid growing concerns about inflation being above the central bank's target.

  • The Fed's stance rattled investors, with TSX pulling back from its all-time high on Wednesday, further weighed down by declines in resources and industrial stocks.

  • Meanwhile, oil prices extended losses on Thursday, with Brent crude trading near $77 a barrel, after Washington and Tehran signed an interim agreement to end the war, reopen the Strait of Hormuz and waive U.S. sanctions on Iranian oil. O/R

  • Separately, Canada, Norway, and Sweden will announce a new Prioritised Ukraine Requirements List (PURL) package to supply Ukraine with U.S. weapons, Sweden's Defence Minister Pal Jonson said in Brussels on Thursday.

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