TSX futures subdued ahead of US jobs data

(Reuters) – Futures tied to Canada’s main stock index rose slightly on Friday as investors remained on the sidelines ahead of key U.S. payrolls data, while focus also remained on the deepening Middle East conflict.

December futures on the S&P/TSX index were up 0.06% at 6:00 a.m. ET (10:00 GMT). The composite index ended lower on Thursday.

The U.S. non-farm payrolls data at 08:30 a.m. ET could paint a picture for the labor market’s health and provide clues on the Federal Reserve’s policy adjustment. The Fed has already seen a 50-basis-point interest rate last month.

Markets see a 67.6% chance of a 25-basis point cut at the U.S. central bank’s November policy meeting, while there still remains a slim chance for a half-point-cut.

Globally, investor are also looking at the deepening tensions in the Middle East, with the U.S. discussing strikes on Iran’s oil facilities as a retaliation to Tehran’s missile attack on Israel.

The energy sector, however, could extend its rally, tracking a rise in oil prices over concerns that the conflict could disrupt crude supply. [O/R]

The materials sector could take its direction from gold prices, which eased ahead of U.S. jobs report, and copper prices that edged higher. [GOL/] [MET/L]

Focus will also be on Canada’s Ivey Purchasing Managers Index data due later in the day.

In corporate news, Canadian news and information conglomerate Thomson Reuters, said it was selling its FindLaw business to Internet Brands.

COMMODITIES

Gold: $2,657.3; +0.06% [GOL/]

US crude: $74.31; +0.8% [O/R]

Brent crude: $78.23; +0.8% [O/R]

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($1 = 1.3559 Canadian dollars)

(Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo)