Futures contracts linked to Canada’s main stock index fell slightly on Tuesday, driven by lower oil prices, as cautious investors await the Bank of Canada’s interest rate decision, expected later in the week.
December futures on the S&P/TSX index were down 0.14% as of 6:12 am ET (11:12 am GMT).
The Bank of Canada is expected to cut its key rate by half a percentage point on Wednesday. Expectations rose after Friday’s employment data showed a sharp increase in the country’s unemployment rate.
Although Canada’s inflation remains within the central bank’s 2% target range, investors have expressed concerns about the country’s dismal economic growth.
The central bank has cut rates by 125 basis points since June, almost double that of its southern neighbor, the US Federal Reserve.
In the commodities sector, oil prices fell as concerns about the fallout from the Syrian president’s overthrow eased. [O/R]
Gold prices rose on escalating geopolitical tensions in the Middle East and expectations of a U.S. rate cut this month. [GOL/]
On the other hand, copper prices fell in the face of a strong US dollar, while disappointing trade figures from major consumer China also weighed. [MET/L]
The composite index ended lower on Monday, retreating from the intraday record, as technology and industrial stocks lost ground.
Across the border, investors await Consumer Price Index (CPI) data due Wednesday that could cement another rate cut by the Federal Reserve next week.
Bets for a 25 basis point cut next week stand at more than 86%.
On the corporate side, food distribution and retail company North West Company missed revenue estimates for the third quarter.
RAW MATERIALS
Or : 2 672,73 $ ; +0,52% [GOL/]
US crude: $67.80; -0.83% [O/R]
Brut Brent : 71,62 $ ; -0,72% [O/R]
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($1 = 1.4169 Canadian dollars)
