Futures for Canada’s main stock index were flat on Wednesday as cautious investors awaited the Bank of Canada’s highly anticipated monetary policy decision, expected later in the day.
December futures on the S&P/TSX index were up 0.01% at 6:00 a.m. ET (10:00 GMT).
The majority of economists polled by Reuters expect the central bank to cut interest rates by half a percentage point. Many of them had increased their bets on a bigger rate cut on news of a sharp rise in the unemployment rate.
Lower credit conditions make borrowing cheaper, which could boost consumer spending and business investment and increase the attractiveness of stocks.
The central bank has cut its key interest rate by 125 basis points since June amid concerns about the country’s tepid economic growth, even though annual inflation has been within its 2% target range.
In commodities, oil prices rose on expectations of higher demand in China after the world’s largest crude oil importer said it would ease monetary policy to boost economic growth. [O/R]
Gold prices were largely flat ahead of the US inflation data and copper prices fell due to the strong US dollar. [GOL/MET/L]
The composite index closed lower on Tuesday as technology and real estate stocks lost ground.
Across the border, traders were closely watching U.S. inflation data for November, which will be released before the bell and could influence the Federal Reserve’s interest rate decision this month. Bets for a quarter point cut are at 84.7%.
In corporate news, forestry and wood products company Canfor Corporation announced that it has acquired 7% of the outstanding shares of its Swedish sister company VIDA AB, effective today.
STORES
Gold: $2694,31; +0,02% [GOL/]
US crude oil: $69.25; +0.96% [O/R]
Brent crude oil: $72.86; +0.93% [O/R]
FOR NEWS ABOUT CANADIAN MARKETS, CLICK ON THE CODES:
TSX Market Report [.TO]
Canadian Dollar and Bonds Report [CAD/] [CA/]
Reuters Global Stocks Survey for Canada
Canadian Markets Directory
($1 = 1.4188 Canadian dollars)
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