TSX futures edge higher as U.S. tech tariff pause bolsters sentiment

Investing.com - Futures tied to Canada’s main stock exchange edged higher on Monday, mirroring similar gains on Wall Street, as investors assessed a tech-related pause to U.S. President Donald Trump’s tariffs.

By 06:48 ET (10:48 GMT), the S&P/TSX 60 index standard futures had climbed by 7 points, or 0.5%.

Toronto Stock Exchange’s S&P/TSX composite index rose by 572.93 points, or 2.5%, in the prior session. The average notched a weekly gain despite a bout of heavy volatility that at one point saw it slump to almost an eight-month low.

A jump in copper and gold prices helped support shares of metal miners and fertilizer companies, while an uptick in oil prices fueled a rally in energy prices. All 10 of the major sectors rose, although real estate names were weighed down by an increase in Canadian long-term borrowing costs that stemmed from a sell-off in U.S. government debt.

Meanwhile, the Canadian dollar was little changed against its U.S. counterpart on Monday, with analysts expecting the Bank of Canada to slash interest rates at an upcoming meeting this week.

The loonie touched its strongest intraday level versus the greenback since November last week.

U.S. futures rally

U.S. stock index futures rose Monday as investors cheered the exclusion of some electronics from Trump’s steep reciprocal trade tariffs, although Trump still warned of more levies on the sector.

At 06:49 ET, Dow Jones Futures gained 362 points, or 0.9%, S&P 500 Futures climbed 69 points, or 1.3%, and Nasdaq 100 Futures rose 282 points, or 1.5%.

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Futures rose after a positive session on Wall Street on Friday, capping off a week that featured back-and-forth announcements around Trump’s tariff policies that caused stocks to whipsaw between sharp losses and steep advances.

A bond market sell-off that flashed warning signs around the traditional safe-haven status of U.S. Treasuries also spooked investors.

This positive sentiment continued Monday after the White House exempted smartphones, computers and other electronics from Trump’s punishing duties.

Trump did say that this was only temporary, and suggested that he would unveil a tariff rate on imported semiconductors over the next week.

Still, the exclusion of electronics from Trump’s 145% tariffs on China in particular granted some reprieve to tech majors with heavy exposure to the country, specifically Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA).

The White House said the exclusions were aimed at giving companies more time to shift production to the United States.

Goldman heads earnings slate

There are more corporate quarterly earnings due this week, starting later in the session with Goldman Sachs (NYSE:GS).

The banking giant is tipped to report first-quarter net revenue of $14.76 billion and adjusted earnings per share of $12.26, according to Bloomberg consensus estimates.

A number of its peers on Wall Street, including JPMorgan Chase (NYSE:JPM) and Morgan Stanley (NYSE:MS), reported strong earnings on Friday, but also flagged that Trump’s tariffs could dent earnings and depress dealmaking.

Additionally, Johnson & Johnson (NYSE:JNJ), Bank of America, Citigroup (NYSE:C), and United Airlines (NASDAQ:UAL) are all set to report on Tuesday.

Crude bounces after sharp losses

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Oil prices edged higher Monday, bouncing following recent losses that were driven by concerns that the trade spat between the United States and China -- the two largest economies in the world -- would weaken global economic growth and crimp fuel demand.

At 06:50 ET, Brent futures edged up by 1.0% to $65.40 a barrel. U.S. West Texas Intermediate crude futures climbed by 1.1% to $62.15 per barrel.

Both contracts have lost roughly $10 a barrel since the start of the month.

Gold prices slip amid some U.S. tariff relief

Gold prices fell from a record high on Monday as risk appetite improved marginally, although sentiment still remained largely on edge.

Weakness in the dollar and Treasury prices also kept gold relatively underpinned and trading above $3,200 an ounce, as did some comments on monetary easing from the Federal Reserve.

Spot gold fell 0.7% to $3,214.52 per ounce, while gold futures expiring in June fell 0.5% to $3,229.60/oz by 06:51 ET.

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