TSX futures rise after U.S.-U.K. trade deal announcement

Published 08/05/2025, 12:08

Investing.com - Futures linked to Canada’s main stock exchange rose on Thursday, as investors assessed the announcement of a trade deal between the U.S. and Britain.

By 06:31 ET (10:31 GMT), the S&P/TSX 60 index standard futures contract had risen by 8 points, or 0.5%.

The Toronto Stock Exchange’s S&P/TSX composite index advanced by 186.46 points, or 0.8%, in the prior session, logging its highest closing level since April 2.

Sentiment was bolstered by a late rally on Wall Street that was fueled by news that the U.S. was planning to ease some curbs on artificial intelligence chip exports.

Meanwhile, the Federal Reserve kep interest rates steady at a target range of 4.25% to 4.5%, although it flagged heightened risks from inflation and unemployment.

On the earnings calendar on Thursday, Canadian multinational e-commerce group Shopify is due to report its latest results, as well as energy firm Canadian Natural Resources (TSX:CNQ) Limited.

U.S. futures point higher

U.S. stock index futures advanced Thursday, as investors assessed the latest Federal Reserve policy meeting and the potential for a major trade agreement.

At 06:55 ET, Dow Jones futures rose 357 points, or 0.9%, S&P 500 futures climbed 60 points, or 1.1%, and Nasdaq 100 futures gained 275 points, or 1.4%.

U.S. President Donald Trump said that a trade deal with the United Kingdom (TADAWUL:4280) would be "full and comprehensive," as the two countries were tipped to soon sign an agreement.

"The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come," Trump said in a post on his Truth Social platform on Thursday. "Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!"

The New York Times (NYSE:NYT) had earlier reported that the deal will be with Britain, citing three people familiar with the plans. Details of the agreement were not immediately clear, although trade talks between the U.S. and the U.K. have covered lower British tariffs on American goods, and vice-versa.

It will be the first major trade deal after Trump announced a barrage of "reciprocal" trade tariffs against major U.S. trading partners in early April. He had later announced a 90-day exemption from the tariffs.

The U.K. was not subject to Trump’s reciprocal tariffs, although it still faces a 10% universal duty, as well as his steep sectoral tariffs. 

This followed news that U.S. officials were set to meet their Chinese counterparts over the weekend for trade talks, in the latest sign of possibly easing global trade tensions.

Crude rises with China and U.S. to talk

Oil prices rose, supported by hopes that upcoming talks between the U.S. and China will lead to a deal between the two largest crude consumers in the world.

At 05:35 ET, Brent futures climbed 0.9% to $61.69 a barrel, and U.S. West Texas Intermediate crude futures rose 1.1% to $58.72 a barrel.

U.S. Treasury Secretary Scott Bessent will meet with China’s top economic official over the weekend in Switzerland for negotiations over a trade war that is disrupting the global economy.

Gold slips

Meanwhile, gold prices edged lower, as easing global trade tensions and a stronger dollar took some of the shine off the yellow metal.

By 07:03 ET, spot gold had slipped by 0.7% to $3,340.20 an ounce.

Gold is often used a haven for investors during times of financial crisis or broader economic uncertainty.

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