TSX futures rebound as focus shifts to G7, US Fed meeting
June 16 (Reuters) - Futures linked to Canada's main stock index recovered from the declines of the previous session on Monday, with investors shifting focus from the Middle-East tensions to this week's G7 summit and U.S. Federal Reserve policy meeting.
June futures on the S&P/TSX index were up 0.4% at 06:44 a.m. ET (1044 GMT).
The Middle-East escalation coincided with the Group of Seven leaders from Britain, Canada, France, Germany, Italy, Japan and the U.S., along with the European Union, gathering in Canada, where U.S. President Donald Trump's tariffs have already strained ties.
Monday's discussions will center on advancing trade deals, with investors closely watching prospects of Canada moving closer to a trade agreement with the U.S.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), opens new tab pulled back from recent highs on Friday, weighed down by fears of wider conflict after Israeli attacks and Iranian retaliation shook global markets.
Still, the benchmark index posted weekly gains, buoyed by rising commodity prices, lower-than-expected U.S. inflation data and optimism around the U.S.-China trade deal.
This week's Fed monetary policy decision presents the next major challenge for the markets. While the U.S. central bank is widely expected to keep interest rates unchanged on Wednesday, investors will watch for hints about potential rate cuts in coming months.
Oil prices , eased after surging 7% on Friday, as weekend military strikes between Israel and Iran left production and export facilities unaffected.
Gold prices also declined, while copper edged higher, supported by better-than-expected Chinese retail sales data.
Company-wise, France-based aerospace firm Safran (SAF.PA), opens new tab and Canadian jet-maker Bombardier (BBDb.TO), opens new tab announced a defense technology innovation partnership on Monday.
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