Futures tracking the TSX slipped on Monday as hopes for a Middle East ceasefire dimmed following the collapse of weekend talks between the US and Iran and Washington’s announcement of a blockade along Iran’s coast. Oil prices jumped, stoking renewed inflation concerns amid mounting supply-shock risks. The move sent bond yields higher and rekindled worries about softer credit demand and the possibility of further rate hikes, weighing on banking stocks.
Gold fell to its lowest level in nearly a week as persistent inflation fears tempered expectations for central bank rate cuts, pressuring precious metals miners. By contrast, energy producers were poised to open higher on the back of the oil rally.
In corporate news, GFL Environmental was reportedly close to a C$6 billion deal to acquire Secure Waste Infrastructure, while BP agreed to purchase interests in three Namibian offshore blocks from Canada’s Eco Atlantic Oil & Gas.
