Bay Street Looks Headed For Weak Start

(RTTNews) - Lower Canadian and U.S. futures amid rising tensions in the Middle East suggest a weak start for Canadian stocks on Thursday. Oil prices have moved up sharply following attacks on oil tankers in the Gulf region.

The rise in oil prices has raised concerns about inflation and possible interest rate hikes by several central banks.

Trade concerns have resurfaced following the Trump administration launching new trade investigations into excess industrial capacity in 16 major trading partners and into forced labor, after the Supreme Court struck down the U.S. President's tariff program last month.

Data from Statistics Canada showed, Canada's trade deficit widened to C$3.6 billion in January 2026 from a C$1.3 billion deficit in December and way more than the expected C$0.9 deficit. Exports fell 4.7% m/m to C$62.48 billion, while imports decreased 1.1% to C$66.13 billion.

Building permits in Canada rose by 4.8% month-over-month to C$13.3 billion in January 2026, following a downwardly revised 6.1% advance in the prior month, a separate data from Statistics Canada showed.

Canadian stocks closed weak on Wednesday as investors parsed U.S. consumer price data against the backdrop of unrelenting inflationary pressures due to escalating oil prices as a result of the Middle East conflict.

The benchmark S&P/TSX Composite Index progressed into positive territory early on in the session, but turned weak and settled lower by 150.82 points or 0.45% at 33,119.83.

Asian stocks tumbled on Thursday as the price of a barrel of Brent crude oil, the international standard, briefly topped $100 on supply concerns following Iranian attacks on commercial shipping around the Strait of Hormuz.

European stocks are showing weakness amid concerns about inflation and possible rate hikes by central banks, amid rising tensions in the Middle East, where Iran has been striking at commercial vessels.

In commodities trading, West Texas Intermediate crude oil futures are up $6.10 or about 7% at $93.35 a barrel.

Gold futures are roughly flat $5,178.90 an ounce, while Silver futures are up $1.675 or 1.96% at $87.210 an ounce.