June 18 (Reuters) – Futures tracking Canada’s blue-chip stocks edged up on Thursday, buoyed by higher gold prices and optimism about the Middle East peace deal, while markets priced in a rate hike later this year following the U.S. Federal Reserve’s hawkish projections.
September futures on the S&P/TSX index were up 0.2% at 6:43 a.m. ET (1043 GMT).
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Spot gold and silver rose 0.1% and 0.2%, respectively, as lower oil prices following the U.S.-Iran ceasefire deal helped temper inflation fears and counter the Fed’s hawkish stance.
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The Fed held interest rates steady on Wednesday, but policymakers expect a hike in borrowing costs later this year amid growing concerns about inflation being above the central bank’s target.
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The Fed’s stance rattled investors, with TSX pulling back from its all-time high on Wednesday, further weighed down by declines in resources and industrial stocks.
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Meanwhile, oil prices extended losses on Thursday, with Brent crude trading near $77 a barrel, after Washington and Tehran signed an interim agreement to end the war, reopen the Strait of Hormuz and waive U.S. sanctions on Iranian oil.
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Separately, Canada, Norway, and Sweden will announce a new Prioritised Ukraine Requirements List (PURL) package to supply Ukraine with U.S. weapons, Sweden’s Defence Minister Pal Jonson said in Brussels on Thursday.
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Reporting by Tharuniyaa Lakshmi in Bengaluru.
