S&P/TSX futures edged up 0.2% on Monday, as a sharp drop in oil prices helped ease inflation worries and investors shifted their focus to Tuesday’s U.S. midterm elections and their potential impact on fiscal policy. Crude prices fell about 4% after Iranian and Qatari officials held a third consecutive day of talks aimed at ending the U.S.–Israeli war on Iran.
Gold, meanwhile, rebounded from one-year lows as markets weighed comments from Federal Reserve officials that signaled the possibility of further interest rate hikes to curb inflation. Monday’s advance came on the heels of the steepest single-day drop in nearly six months for Canada’s benchmark index, dragged down by technology and mining shares.
Investors are also awaiting quarterly results from Toromont Industries and Topaz Energy. On the trade front, U.S. President Donald Trump said his administration had established a framework for a new trade agreement with Canada, while Prime Minister Mark Carney characterized the talks as constructive.