TSX futures slip on escalating Ukraine crisis, lower gold prices

[April 05, 2022]  (Reuters) - Futures for commodity-heavy Canada's main stock index slipped on Tuesday as a fall in bullion prices overshadowed a rise in crude prices on growing prospects of more Western sanctions on Russia over its invasion of Ukraine.

June futures on the S&P/TSX index were down 0.1% at 7:00 a.m. ET.

Spot gold edged 0.2% lower as higher U.S. Treasury yields and expectations of aggressive interest rate hikes by the Federal Reserve dimmed its appeal. [GOL/]

Oil climbed over 1% on concerns over tighter global supply as the United States and Europe planned new sanctions to punish Russia over alleged war crimes in Ukraine.[O/R]

An EU source told Reuters the European Commission is to propose new sanctions including a ban on imports of coal, rubber, chemicals and other products from Russia worth up to 9 billion euros a year.

While the geopolitical tensions has rattled risk appetite, it has spurred a rally in commodity stocks which helped the resources-heavy TSX index outperform many of its global peers with a 4.1% gain so far this year.

The Toronto Stock Exchange's S&P/TSX composite index ended 0.6% higher at 22,085.60 on Monday. [.TO]
 

Dow e-minis were down 79 points, or 0.23%, at 7:00 a.m. ET, while S&P 500 e-minis were down 9.75 points, or 0.21%, and Nasdaq 100 e-minis were down 31 points, or 0.2%. [.N]

TOP STORIES [TOP/CAN]

Canada's Liberals find themselves in a bind ahead of this week's budget: the economy has recovered from the pandemic, yet Prime Minister Justin Trudeau has pledged billions in new stimulus, a political poker chip that could further torch runaway inflation.

Lion Electric Co received an order for 50 all-electric LionC school buses from Autobus Campeau in the province of Quebec.

ANALYST RESEARCH HIGHLIGHTS [RCH/CA]

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. Canada's main stock index was little changed on Monday as weakness in financial and energy shares offset gains in the materials sector. REUTERS/Mark Blinch

Mcloud Technologies Corp: Alliance Global Partners cuts PT to C$5.50 from C$6.50

Osisko Gold Royalties Ltd: Scotiabank cuts target price to C$22.50 from C$26

COMMODITIES AT 7:00 a.m. ET

Gold futures: $1,927.6; -0.2%

US crude: $104.51; +1.2%

Brent crude: $108.7; +1.1%

MAJOR U.S. ECONOMIC DATA DUE ON TUESDAY

0830 International trade for Feb : Expected -$88.5 bln; Prior -$89.7 bln

0945 S&P Global Services PMI Final for March : Prior 58.9

0945 S&P Global Composite Final PMI for March : Prior 58.5

1000 ISM N-Manufacturing PMI for Mar : Expected 58.4; Prior 56.5

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report [.TO]

Canadian dollar and bonds report [CAD/] [CA/]

Reuters global stocks poll for Canada

Canadian markets directory

($1= C$1.25)

(Reporting by Devik Jain in Bengaluru; Editing by Shailesh Kuber)

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