Markets Slide on US-Iran Conflict Stalemate
Global markets dipped lower after efforts to end the U.S.-Iran conflict hit an impasse, leaving investors awaiting economic data for fresh clues on growth and interest rates.
The Wall Street futures were muted following yesterday's decline in U.S. markets, while TSX futures also turned red after Canada's main stock market closed at a record high due to energy share strength.
Today, Canadian investors will receive earnings results from Constellation Software Inc., Franco-Nevada Corp., and Denison Mines Corp.
The July consumer price report in the U.S. is expected to influence expectations for September's Federal Reserve meeting, where there's a 50/50 chance of a rate hike, according to money markets.
Capital Economics' chief markets economist, Jonas Goltermann, said: 'We think the risks are skewed towards a hot print, which would probably drive a rebound in rate expectations and potentially renewed worries about stagflation.'
Oil prices rose as hopes for a U.S.-Iran deal faded, with Brent crude futures up 2.45% to US$89.87 a barrel and West Texas Intermediate (WTI) crude futures gaining 2.6% to US$84.28 a barrel.