(Illustration: Camille Charbonneau)
THE ESSENTIAL NEWS
• Economists predict that the Bank of Canada will cut its interest rate on Wednesday. The Bank of Canada (BoC) is expected to cut its key overnight rate for the first time in more than four years on Wednesday, economists say, supported by data showing slowing inflation and sluggish economic growth.
• Housing sales in the Toronto region decline in May. Greater Toronto Area residential sales declined in May for the fourth straight month, while prices rose slightly, data shows. This is because buyers are waiting for the central bank to start reducing borrowing costs.
• Dollar Tree plans to sell its struggling subsidiary, Family Dollar. Dollar Tree said it was exploring options, including a possible sale or spinoff of its Family Dollar brand, as the retailer seeks to restructure its business in the face of fierce competition and pressured household consumption.
• Boeing will try again to launch the first manned Starliner mission. Boeing’s Starliner spacecraft is ready for a third attempt to send astronauts into space for the first time. That attempt will take place on Wednesday, a much-delayed test step for the aerospace giant and its ambition to step up competition with Elon Musk’s SpaceX.
• The United States could accelerate the pace of replenishing its oil reserves, says Energy Secretary Granholm. The United States could accelerate the pace of replenishing its strategic oil reserve as maintenance of the reserve is expected to be completed by the end of the year, Energy Secretary Jennifer Granholm told Reuters on Tuesday.
TRENDS BEFORE OPENING
Futures for the main Canadian stock index rise slightly in anticipation of the Bank of Canada’s much-anticipated interest rate decision, while oil continues its slide on an increase in supply scheduled for later this year. U.S. stock futures edged higher as investors bet on an anticipated Fed rate cut due to recent data signaling an economic slowdown. European stocks are rising, echoing upbeat global sentiment, ahead of the ECB’s key interest rate decision this week. In Asian stock markets, Chinese stocks closed lower, led by declines in the consumer and real estate sectors, despite an unexpected rise in services activity in May. The Nikkei ended lower, as economically sensitive stocks fell after the release of lower-than-expected data on the US jobs market. The US dollar rose ahead of the release of the ADP national employment report and US service sector surveys, both due later in the day. The price of gold rose slightly.
