Bay Street May Open On Weak Note

(RTTNews) - Lower Canadian and U.S. futures and weak gold prices point to a negative start on Bay Street Thursday morning. Rising tensions in the Middle East and continued uncertainty about Iran and the U.S. arriving at a solution to end the conflict anytime soon may weigh on sentiment.

U.S. President Donald Trump has announced an "economic operation" against Iran and its trading partners. Sharpening his rhetoric against Tehran, Trump warned of economic consequences against any country that provided "any type of lifeline to Iran."

Asked about the Iran war, Trump reiterated that the U.S. has "complete control" of the Strait of Hormuz and that the talks could resume "maybe at some point."

Iran's Foreign Minister Abbas Araghchi said Trump's "doubling down on failed policies will only bring further defeat" to the U.S.

Data on Canadian producer prices for the month of July is due at 8:30 AM ET. The data could provide some clues to the Canadian central bank's interest-rate moves.

The focus is also on a potential trade deal between Canada and the U.S.

The Canadian market ended slightly up on Wednesday, snapping a three-day losing streak. The temporary pause on U.S. tariffs on Canadian goods aided sentiment. Materials stocks rose sharply thanks to higher precious metals prices.

The benchmark S&P/TSX Composite Index ended with a gain of 33.86 points or 0.09% at 36,401.79.

Asian stocks climbed higher on Thursday as an emergency buyback of longer-dated debt by the U.S. Treasury helped ease some of the pressure from surging long-term yields.

The major European markets are down in negative territory in cautious trade today amid lingering concerns about Middle East tensions and higher oil prices. Disappointing regional economic data weigh as well on sentiment.

In commodities trading, West Texas Intermediate Crude oil futures are up $2.13 or 2.48% at $87.96 a barrel.

Gold futures are down $35.30 or 0.78% at $4,510.00 an ounce, while Silver futures are down $0.055 pr 0.06% at $65.820 an ounce.

Gold prices fell as investors booked profits following a climb to a more than two-month high on a surprise U.S. Treasury liquidity-support announcement for long-duration bonds.