Futures contracts for Canada’s main stock index rose Thursday, tracking Wall Street counterparts, as high gold prices supported the metal mining sector.
March futures on the S&P/TSX index were up 0.1% as of 6:40 a.m. ET (1140 GMT).
U.S. stock index futures also rose Thursday, helped by strong quarterly results from Bank of America, as investors await economic data that could offer insights into the health of the world’s largest economy. [.N]
Gold prices rose to their highest level in a month and copper prices hit their highest level in five weeks, supported by a pause in the dollar’s rise. Renewed hopes for a Chinese economic recovery have also boosted copper prices. [GOL/][MET/L]
The Toronto Stock Exchange’s S&P/TSX composite index ended up 0.8% on Wednesday, its biggest gain since November 21, as encouraging signs of a slowdown in US inflation strengthened the chances of a further reduction in interest rates by the Federal Reserve and the Bank of Canada.
If the interest rate gap between the United States and Canada narrows, the Bank of Canada has greater room to lower rates without causing excessive depreciation of the Canadian dollar.
In December, the Canadian central bank cut rates by 50 basis points to 3.25% and indicated that further easing would be gradual. Markets are pricing in a 67% chance of cutting rates by 25 basis points this month.
Canada could impose countermeasures on U.S. imports worth up to C$150 billion ($105 billion) if President-elect Donald Trump imposes tariffs on Canadian goods and services, a a source familiar with the matter told Reuters on Wednesday. Trump had proposed customs duties of 25% to push Canada to relinquish its borders.
In corporate news, Orla Mining said it produced 26,531 ounces of gold in the fourth quarter, bringing annual gold production for 2024 to 136,748 ounces. ($1 = 1.4375 Canadian dollars)
Canada
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