March 2 (Reuters) – Futures for Canada’s main stock index fell on Monday, mirroring declines in global equities as mounting tensions in the Middle East stoked fears of a conflict that could drag on for weeks.
March futures on the S&P/TSX composite index were down 0.47%, as of 5:45 a.m. ET.
U.S. and Israeli strikes — and Iranian retaliation — rippled across sectors worldwide, from shipping and aviation to oil, while investors worried that a drawn-out regional war could push energy costs higher and disrupt business in the Gulf region.
U.S. President Donald Trump suggested on Sunday that the conflict with Iran could go on for the next four weeks.
Futures for U.S. stock indexes also fell, while the pan-European STOXX 600 was down 1.3%.
Oil prices surged after retaliatory Iranian attacks disrupted shipping in the crucial Strait of Hormuz. Brent crude futures and U.S. West Texas Intermediate crude were up 7.8% and 7.3%, respectively.
The U.S. dollar index rose 0.6%, as safe-haven demand strengthened in response to the escalating conflict.
Spot gold gained 2.2% and silver rose 1.8%.
Toronto’s benchmark index closed lower on Friday, led by losses in tech stocks amid worries over AI-disruption, while financials also fell. Yet, the index posted its biggest monthly gain since November 2020.
Separately, India and Canada will aim to conclude a free trade pact by the end of this year, Prime Minister Mark Carney said on Monday during his first visit to New Delhi.
The two sides also agreed on a $2.6 billion uranium deal, under which Canada’s Cameco will supply the fuel to India to support its nuclear ambitions and to work towards a clean, reliable base load power.
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(Reporting by Utkarsh Tushar Hathi; Editing by Shilpi Majumdar)
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