Futures tracking Canadian equities inched lower on Friday, pressured by heightened geopolitical uncertainty in the Middle East. A US threat of an open-ended naval blockade of Iran rekindled fears of potential disruptions to regional crude oil supplies. Oil prices climbed in response, stoking inflation concerns and weighing on financials and other interest rate–sensitive stocks. In contrast, gold prices rebounded after earlier declines, providing a lift to mining shares.
On the corporate front, Bird Construction reported second-quarter earnings that exceeded expectations, prompting at least three brokerages to raise their price targets on the stock. Air Canada expects revenue for September and October to hit record levels for those months, as more premium travelers opt to avoid the heat and summer crowds in Europe and Japan, according to a senior executive. Canadian Tire beat second-quarter estimates for both earnings per share and revenue, while Onex said its second-quarter results reflected progress toward several key strategic objectives.
