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TSX futures are rising as Middle East crises boost oil and gold prices
Futures tracking Canada’s main stock index rose Wednesday as rising tensions in the Middle East drove up oil prices for a fourth consecutive day while demand for safe-haven gold boosted the price of the futures. As of 5:20 a.m., March futures for the?S&P/TSX 'composite index? were up 0.36%. ET. As the conflict enters its fifth day, it has shocked investors around the world. Goldman Sachs CEO David Solomon stated that it would take two weeks for the markets to digest the effects of the war in Iran. Oil prices rose?but a little slower than previous sessions, as traders considered the possibility of a Middle East supply disruption. On Tuesday, President Donald Trump stated that the U.S. Navy would be able to begin escorting oil tankers through Strait of Hormuz. Mark Carney, the Canadian Prime Minister, said on Wednesday that the current conflict is a "failure of the international system" and that the U.S. did not consult its allies prior to striking Iran. Brent crude futures rose 3%, while U.S. West Texas intermediate crude crude gained 2.8%. Investors rushed to buy the safe-haven gold, which gained over 2%. Silver prices rose by 5.4%, and copper prices also firmed. Toronto's benchmark stock index fell 2.2% on February 2, logging its biggest drop in three weeks. Fears of inflation due to the prolonged Middle East crisis led to a "broad-based" decline, with miners leading the way. On Tuesday, a Brazilian court halted a transfer of mineral rights for a gold asset?sale?from Equinox Gold?to Chinese metal -miner CMOC. CLICK CODES TO GET CANADIAN MARKETS NEWS TSX Market Report Canadian Dollar and Bond Report Global Stocks Poll for Canada Canadian Markets Directory (Reporting and Editing by Shreya Biwas; Utkarsh T. Hathi)
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Copper and other base metals are lifted by China factory data
On Wednesday, copper prices recovered from two sessions of losses due to better than expected private factory data from China, the top metals consumer. The aluminium price rose to its highest level in more than a month, on the back of supply concerns resulting from the escalating conflict in the Middle East. This region is a major producer of this metal. The benchmark three-month copper price on the London Metal Exchange rose 1.5%, to $13,150 per metric ton at 1030 GMT. LME copper has fallen 3% in the last two sessions due to fears that the Mideast conflict will hinder economic growth and metals demands. China's factory data is mixed. The official "purchasing managers' index" tracking large state owned manufacturers came in slightly lower. The metals market was focused on the?second survey? of smaller private producers, which exceeded analysts' expectations, with new orders volumes increasing for the ninth consecutive month. The PMIs were positive, and we are moving in the right direction with good orders, and positive growth. Robert Montefusco, broker at Sucden Financial, said that people are once again buying copper. We've had some big swings in this week. LME aluminium rose 1.7% to $3.305 per ton. It had reached $3.318 at its highest since January 29. Norsk Hydro, a Norwegian company, announced on Tuesday that it would be shutting down its joint venture for aluminium in Qatar. LME aluminum has risen 5% this week, after Israel and the U.S. launched an attack against Iran at the weekend. Around 8% of the global aluminium production is produced in this region. Ewa Manthey is a commodities strategist at ING. She said that the disruption has "hit a market which was already tight". LME inventories are falling, premiums have risen and the spread between LME cash and benchmark three-month contracts has tightened. She added that the shortages began even before the war. ($1 = 6.9161 Chinese yuan renminbi) (Reporting by Eric Onstad, additional reporting by Lewis Jackson and Dylan Duan in China; Editing by Shailesh Kuber) ($1 = 6.9161 Chinese Yuan Renminbi)
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Indian shares fall as Mideast conflict drives up oil prices and fuels inflation fears
The rupee fell to a new low, and bonds also dropped as oil prices rose due to the Middle East conflict, causing inflation worries and shaking financial markets worldwide. The Nifty 50 fell by 1.55%, to a six-month-low closing price of 24,480.50. And the BSE Sensex dropped 1.4%, to an 11 month-low of 79116.19. The benchmarks each lost around 4% in three sessions. Other Asian markets fell 4.1% with a market crash of record in South Korea. This was due to fears that a larger Middle East conflict could cause an energy shock, which would increase inflation and delay rate cuts. Brent crude futures were up 3.1% at $83.95 per barrel by 10:00 GMT. In four sessions, they have gained 18.7%. India imports 80% its crude oil needs, so a sustained increase in crude oil price could hurt the growth of India. Macquarie analysts led by Suresh Ganapathy said that any spike in oil prices for India would have implications on current account deficits, fiscal deficits and inflation. It also put downward pressure on the Indian rupee. 15 of the 16 major sectors posted losses on Wednesday. The small and mid-caps lost 2.1% and 2.2% respectively. The Nifty India volatility index has jumped up to 21,14. This is its highest level since the 9th of May 2025. This indicates a surge in investor anxiety. Arun Kejriwal is the founder of Kejriwal Research and Investment Services. He said, "The Middle East conflict dominates sentiment at this time and markets take the easy route out when they are in doubt." Kejriwal stated that fresh investments will not be made in the near future as investors will be cautious and prune their portfolios. He added that while India may find relief from crude prices through Russian imports, and domestic inflows could offer some support, stocks whose earnings have been?hit by recent disruptions, will suffer. According to Interfax, Russian Deputy Premier Alexander Novak stated?on? Wednesday that Moscow is?ready? to increase oil supply to China and India. Larsen and Toubro fell 4.5%, after falling 5% the previous day. The Nifty heavyweights - HDFC Bank, ICICI Bank, and Reliance Industries all fell 1%. Oil marketing companies such as Bharat Petroleum Corporation (BP), Hindustan Petroleum Corporation (HPC) and Indian Oil Corporation (IOC) lost between 4.8% and 5.5%. Tire makers like MRF, JK Tyre, and Ceat have lost between 2.7% and 8%. Interglobe Aviation, the airline operator, fell 2.8% from 6.4% the previous session. The conflict forced carriers to cancel flights in Europe and the Middle East.
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Italy is ready to reactivate its coal-fired plants in the event that the Gulf Crisis worsens
Italy's Energy Minister?said Wednesday that the country could reactivate some coal-fired?power stations if conflict in?the Middle East leads to an energy shortage. Gilberto Pichetto Fratin, Minister of Energy and Environment in Italy, said that "there are coal-powered stations in Italy that I would not like to reactivate. But they're there in reserve for our country." Israeli and U.S. Forces?struck Iranian targets on Tuesday. This prompted Iranian strikes against energy infrastructure in other Gulf States considered U.S. Allies in a area that accounts for just under a third global oil production. Iran also targeted tankers in the Strait of Hormuz. Through this strait, about a fifth of all oil and gas liquefied flows. The Strait of Hormuz was effectively closed to traffic for a 4th day following the attack by Iran on five ships. Italy's gas supply is diverse, including Norway, Algeria, and Azerbaijan, among others. The country also has a relatively large amount of gas stored. Pichetto?Fratin stated that "on the (energy security) front, our nation is... quite safe in terms of quantitative safety." He added, "We do not have an extreme?severe situation in terms of?the quantity of resources. I'm referring primarily to gas."
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Spain is hit by US Trade Worries, Europe's STOXX600 ticks up
Spanish stocks slid Wednesday following fresh threats of a trade embargo from the White House. Other regional benchmarks also climbed after a brutal global sell-off that dragged stock prices to more than one-month lows amid fears about the Middle East conflict. The pan-European STOXX 600 index was up 0.6% to 607.92 by 0939 GMT. This follows two sessions in which the index lost more than 4% since Friday's record high. The benchmark index rose the most in the Technology and Healthcare sectors. The STOXX Volatility Index, Europe's fear gauge after four sessions of gains, has slipped 2.3 points. Spain also slipped. Regional bourses tried to?recover from multi-week lows. The IBEX 30 dropped as much as 1% following a threat by U.S. president Donald Trump to impose a trade ban on Spain after Madrid refused to allow the U.S. to use its bases in missions related to strikes against Iran. The broad banking index continued to decline for a third session in a row. Chris Beauchamp is chief market analyst for IG Group. He said: "It's rare that there's an obvious catalyst, but you can't argue with the fact that Trump made a peeved remark about Spain yesterday night. Vistry's shares fell 17.8% when the UK-based homebuilder announced that its CEO and Chairman, Greg Fitzgerald, intended to step down. The roles will be divided after his retirement. OIL CLIMBS HIGHER, JITTERS? PERSIST Israeli and U.S. troops continued to pound targets in Iran, starting on Saturday. This prompted retaliatory attacks from Tehran against U.S. allies across the Gulf region. These strikes have targeted establishments such as oil refineries and U.S. Embassies. The price of oil has risen by more than 13% in the last week. Europe is reliant on energy and goods shipped through the Strait of Hormuz, which means that the route is choked. Alternative routes could mean longer journeys, higher costs and a rapid impact on everything from transportation to consumer prices. The oil sector is down 0.6% for a second session in a row. The markets are also dealing with a mixed picture of the economy. The PMI showed that euro zone services expanded slightly faster in February. Germany's economic growth reached a four-month high. France was still in contraction and Italy's growth cooled. Adidas, among other stocks fell 7.4% after its earnings results. ASM International rose 5.1% after it said that its first-quarter revenue in 2026 is expected to reach 830 million euros. (Reporting and editing by Rashmi Aich, Krishna Chandra Eluri, and Avinash P. in Bengaluru)
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Japan reactor restarts fuel record nuclear sales for Mitsubishi Heavy
The restart of nuclear reactors in Japan is expected to boost sales at Mitsubishi Heavy Industries (MHI)'s nuclear power unit next year. This will be a record 400 billion yen, or $2.54 billion. This is well ahead of previous forecasts. Hiroshi Nishio said in an interview that we originally thought it would reach 400 billion yen by 2030. MHI plans to increase its headcount by about 10% in the reactor division next year, as orders continue to grow. After 15 years of the nuclear crisis in Japan caused by the tsunami, 15?of the 33 reactors are now operational. The Japanese government claims it must turn them off 'to reduce imports of gas and oil, which make up 'about two thirds' of Japan's power generation. The Middle East is the source of a large amount of this fossil fuel, where supplies were disrupted by U.S. air strikes on Iran. Last month, Fukushima's operator Tokyo Electric Power Co turned on the first of seven idle nuclear reactors at Kashiwazaki Kariwa, which is located 220 km (136 miles) north of Tokyo. MHI is developing a?next-generation reactor with Japanese utilities, that will, it claims, be safer than those that melted?at Fukushima. Nishio said that MHI's nuclear business was sustained in part by the Rokkasho spent fuel reprocessing facility, which separates reusable uranium, plutonium, and 'high-level radioactive materials from the?wastes. "We kept people and technology in the belief that nuclear power was destined to be restarted." $1 = 157.4300 Japanese Yen (Reporting and editing by Andrew Heavens, Tomaszjanowski, and Tim Kelly)
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German union targets breakthrough at Tesla Berlin
Germany's leading industrial union is 'fighting for more power' at Tesla's gigafactory near 'Berlin', where staff will vote for a new work council following a campaign that was marked by mudslinging and court challenges. The voting began at Tesla's Gruenheide factory, the only European production facility of the U.S. electric vehicle maker. Results are expected on Wednesday. The current council is dominated largely by non-unionists. The IG-Metall union has 116 candidates running to gain a simple majority of 19 seats. The union won 16 seats in the previous election, two years ago, when the council held 39 seats. IG Metall has accused management of inciting anti-union sentiment. Andre Thierig, the plant director, has countered by saying that the union's focus is solely on boosting IG Metall members. "We are extremely satisfied with our campaign." Laura Arndt, IG Metall’s leading candidate, said that she was running with a "great team" and that her issues were "clearly hitting a chord" with colleagues. The German labour relations system is based on works councils that are elected by the employees. They represent workers in discussions with management. IG Metall is the dominant union at all German automakers, including Volkswagen, BMW, and?Mercedes, but it remains the underdog in Tesla, whose CEO Elon?Musk has been outspoken about his dislike of unions. Tensions reached a peak in February 'when Tesla accused a IG Metall trade unionist of secretly'recording a Works Council meeting and filed a criminal case. IG Metall dismissed this allegation, calling it a "calculated falsehood". (Reporting and editing by Rachel More & Christina Amann. Mark Potter edited the article.
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Bloomberg News reports that Chinese lenders are reducing their exposure to the Middle East.
Bloomberg News reported that many Chinese 'financial companies are reducing their exposure to Middle Eastern debt due to the escalating conflict in the Middle East. The report stated that a major bank had taken the unusual step of limiting the drawdown on a bi-lateral loan to one?of Abu Dhabi's financial entities. It did not name the bank. According to the report, another mid-sized lender wants to sell down portions of syndicated loan to Middle Eastern borrowers. This includes sovereign wealth fund ADQ’s $4?billion facility that was agreed upon last year. Bloomberg reported that the Hong Kong Monetary Authority has asked two local banks, to review their exposures to Middle Eastern bonds and loans. The Bloomberg 'News' report stated that China's National Financial Regulatory Administration had asked domestic lenders to review their financing activities, including any debts extended to state-owned entities. They were instructed to report a report on?their findings this week. Hong Kong Monetary Authority (HKMA) and China's National Financial Regulatory Administration (NFRA) did not?immediately respond to a request for a?comment. Bloomberg reported that the asset management arm of a Chinese insurer is also reducing its holdings in sovereign bonds and state-linked securities from the region, which include bonds issued by Saudi Arabian oil giant Aramco. Could not verify immediately the report.
Traders say that India's MRPL has declared force majeure for gasoline export cargoes in March and April.
Two traders reported that India's Mangalore Refinery & Petrochemicals declared force majeure for all future gasoline export cargoes due to the Middle East conflict, which has disrupted crude oil shipments from the Gulf.
One of the traders stated that the company has already allocated two to three loads via tenders, for loading in early March. It is currently negotiating with buyers about these supplies.
The trader said that MRPL has swap agreements with traders for receiving crude cargoes and supplying'refined fuel.
The state-run refiner, which runs a 300,000-barrel-per-day refinery in the ?southern state of Karnataka, exports about 40% of its refined fuel output.
After U.S., Israeli and Iranian strikes disrupted energy trade, Iranians attacked vessels that were shipping through the Strait of?Hormuz, a conduit of about a fifth?of the oil consumed worldwide.
MRPL didn't immediately respond to an email request for comment. Unnamed source within the company confirmed that the "force majeure" had occurred.
Indian refiners purchase about 40% of the crude oil they need from the Middle East. They also source from spot markets, and process domestic oil.
A government source revealed on Tuesday that India is looking for 'alternative sources' to import crude oil, liquefied gas, and liquefied gas.
In January, MRPL announced that it was looking into purchasing Venezuelan oil after the refiner halted its imports of Russian crude oil in order to comply with Western sanctions.
India's crude stocks?are enough to meet the demand for?about 25 days. The government source said that refiners also "hold a 25 day inventory" of gasoline, gasoil and liquefied petrol gas. (Reporting and editing by Mohi N. Verma and Nidhi V.; Christian Schmollinger, Clarence Fernandez and Tom Hogue)
(source: Reuters)