TSX futures decline as Trump extends Iran deadline

Futures for the main stock index in Canada edged lower on Friday morning as geopolitical uncertainty surrounding the Middle East continued to weigh on investor sentiment. Gains in the resource sector, specifically in energy and bullion, helped to limit the downside for the commodity-heavy market. June futures for the iShares S&P/TSX 60 Index ETF were down 0.2% as of early morning. The primary focus for global markets remains the escalating tension involving the United States and the Strait of Hormuz. President Donald Trump has extended the deadline for Iran to reopen the critical shipping lane to April 6, warning that the nation will face targeted strikes on its energy infrastructure if the deadline is not met. In the commodities market, WTI Crude Oil Futures moved higher as traders expressed doubt that a diplomatic agreement would be reached before the deadline. Meanwhile, Gold Futures rose due to a softening dollar and bargain buying. However, the metal is still positioned for its fourth straight weekly decline as rising energy costs stoke global inflation fears and heighten expectations for further interest rate increases. Domestically, the Bank of Canada has signaled a difficult path ahead as it attempts to navigate long-term structural changes to the economy. Senior Deputy Governor Carolyn Rogers addressed these challenges during a recent speech. > The next five years could prove as turbulent as the last. Market participants currently expect the central bank to hold interest rates steady at its upcoming April meeting. However, data indicates that traders are pricing in nearly three rate hikes by the end of the year, which has influenced the performance of the Canadian Dollar / U.S. Dollar exchange rate. The main Canadian index is currently on track to finish the month of March down 7.1%, following a negative close on Thursday that erased earlier weekly gains.