July 8 (Reuters) - Futures tracking Canada's resource-heavy
benchmark index fell on Wednesday as renewed U.S.-Iran tensions
cast doubt over the durability of a fragile ceasefire in the
Middle East and pushed up oil prices, reviving inflation fears.
Futures tracking the S&P/TSX Composite index were
down 1.1% at 6:52 a.m. ET.
* Oil prices climbed to a two-week high after U.S. President
Donald Trump said the memorandum of understanding with Iran to
end the conflict was "over", renewing fears over potential
disruptions to global energy supplies.
* Brent crude futures gained 5.1% to $77.94 a
barrel, while U.S. West Texas Intermediate crude inched
up 4.9% at $73.92 after Trump's remarks.
* Gold prices also slipped as higher energy prices stoked
concerns over inflation and higher interest rates. Spot gold
fell 1.3%, while silver shed 2.5%.
* Investors are awaiting minutes of the U.S. Federal
Reserve's meeting, due at 2:00 pm ET, for cues on the future
monetary policy path.
* A soft U.S. jobs report last week amid signs of easing
Middle East tensions had tempered expectations of multiple U.S.
interest rate hikes this year.
* Traders are pricing in an increase of 36 basis points to
U.S. borrowing costs by the end of this year, according to LSEG
data.
* Meanwhile, the Bank of Canada is expected to keep interest
rates unchanged this year, with the next policy decision due on
July 15.
* In company news, Trilogy Metals ( TMQ ) reported a wider
second-quarter loss.
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