TSX futures slip as US trade curbs and inflation fears rise
TSX futures fell as the US expanded trade restrictions on Canada, including bans on alcohol, motorcycles and dairy, while Middle East tensions lifted oil and revived inflation worries ahead of Friday US CPI.
Futures tracking Canadian stocks were lower on Wednesday after the US expanded trade restrictions on Canada on Tuesday. The US banned imports of numerous alcoholic beverages, motorcycles and dairy products, following 50% tariffs imposed last month on about $20 billion of Canadian goods and retaliatory tariffs from Canada. Oil prices climbed as intensifying hostilities in the Middle East revived inflation fears, with risks to global energy supplies rising in recent weeks as the six-month-old conflict escalated ahead of Friday’s US CPI data. Credit-sensitive stocks, including major banks, were under pressure as expectations increased for rate hikes in Canada and the US.
P. Morgan initiated coverage with an “overweight” rating. Gold prices also rose, which supported miners.