Futures linked to the S&P/TSX Composite Index fell on Thursday as investors stayed cautious amid escalating Middle East tensions, now in their sixth day. Oil prices jumped on fears of supply disruptions, further amplified by reports that the Chinese government has ordered its largest refiners to halt diesel and gasoline exports. The spike in energy prices heightened inflation concerns, driving Canadian bond yields higher and increasing borrowing costs, which in turn weighed on major companies.
Canadian Natural Resources reported fourth-quarter earnings that beat expectations, supported by a 12.8% year-over-year increase in production to a record 1.66 million barrels of oil equivalent per day. Gold prices also advanced as investors sought safe-haven assets, boosting mining stocks. Separately, Canada signed new critical minerals agreements with Australia.
