Futures for Canada’s main stock index rose Friday, supported by higher crude oil prices, as investors await crucial U.S. inflation data to gauge the outlook for the Federal Reserve’s monetary policy.
The S&P/TSX 60 futures were up 0.48% as of 06:56 am ET (1056 GMT). Canada’s benchmark index is expected to post its first weekly gain in six weeks, increasing its trends for the first half of the year.
Markets will focus on data from the Personal Consumption Expenditures (PCE) Price Index – the Fed’s preferred inflation gauge – at 0830 ET, which is expected to show that price pressures moderated in May compared to the previous month.
Money market participants currently assess the probability of a September rate cut by the US central bank at 64.7%.
In Canada, hopes of a rate cut from the Bank of Canada (BoC), which traditionally follows the American Fed, were tempered by higher-than-expected inflation data on Tuesday. Investors now estimate a 41% chance of a rate cut in July.
Traders will also closely monitor Canada’s GDP figures for the month of May to gauge the strength of the national economy.
The energy sector had another positive session with oil futures rising, on track for a third straight weekly jump, supported by Fed rate cut hopes and upcoming inflation data. [O/R]
Copper prices have stabilized but are set to post their first monthly decline since February due to uneven economic growth in China. On the other hand, gold prices have firmed and are set to post their third consecutive quarterly gain. [MET/L] [GOL/]
As for business, Canada’s federal government intervened Thursday to prevent a strike by WestJet Airlines maintenance engineers, backed by Onex Corp, to prevent further flight cancellations as a weekend approaches Very busy holiday weekend.
RAW MATERIALS
Or : $2334.9 ; +0.32% [GOL/]
US crude: $82.37; +0.77% [O/R]
Brent : 87,04 $ ; +0,75% [O/R]
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($1 = 1.3691 Canadian dollars)
