(Reuters) – Futures tied to Canada’s main stock index declined on Thursday as trade tensions lingered despite some reprieve on U.S. tariffs.
The futures on the S&P/TSX index were down 1% at 6:30 a.m. ET (1130 GMT).
The S&P/TSX composite index recorded a strong rally in the previous session, closing 1.2% higher.
U.S. President Donald Trump on Wednesday exempted automakers from his stringent tariffs on Canada and Mexico for one month, as long as the companies complied with the terms of an existing free-trade agreement.
However, Trump made it clear that he was not calling off his 25% tariffs on Canadian and Mexican imports, pressing the two countries to deter fentanyl smuggling.
Oil prices were steady on Thursday, recovering slightly from a multi-year low. Brent was below $70, still pressured by the ongoing trade tensions and OPEC+’s plans to raise output.
Gold prices fell as investors took profits following a three-day rally. Copper prices hit a near three-week high, helped by a sharp pullback in the U.S. dollar and hopes for more stimulus from top consumer China. [GOL/] [MET/L]
The U.S. weekly jobless claims report, due before markets open, will set the stage for Friday’s key U.S. payrolls data that could help investors gauge the economy’s health.
Traders expect the U.S. Federal Reserve’s first interest-rate cut for the year in June.
On the other hand, the Bank of Canada is widely expected to slash its benchmark rate by a quarter-point next week.
Investors will also be looking out for Canada’s trade data later in the day.
In corporate news, oil and gas company Canadian Natural Resources posted a fall in fourth-quarter profit as weaker commodity prices overshadowed a rise in production.
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(Reporting by Nikhil Sharma; Editing by Shreya Biswas)
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