TSX futures muted ahead of BoC decision, commodities limit declines
April 9 (Reuters) – Futures for Canada’s main stock index were muted on Tuesday as investors remained cautious ahead of the Bank of Canada’s next interest rate decision later in the week while climbing commodity prices kept declines in check.
June futures on the S&P/TSX index were flat at 7:00 a.m. ET (11:00 GMT), mirroring their Wall Street peers.
The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE), opens new tab ended flat on Monday, as gains in financials were offset by healthcare losses.
The Bank of Canada is set to announce its next monetary policy decision on Wednesday, where the central bank is widely expected to leave interest rates unchanged, in its third meeting this year.
However, markets are pricing in a little over 65% bets of a cut in June. 0#BOCWATCH
The last crucial data before the decision showed on Friday that Canada’s economy had shed a net 2,200 jobs in March, while the unemployment rate increased to a 26-month high of 6.1%, solidifying bets of a June cut.
On the commodities front, oil prices edged higher on Tuesday after diminishing hopes that negotiations between Israel and Hamas would lead to a ceasefire in Gaza, and on Mexico’s plan to remove more crude from the global market.
Gold prices hit a record high for an eighth consecutive session with support from momentum-following funds and inflated geopolitical tensions, while Shanghai copper hit a record high.
Across the border, monthly readings of key inflation data are due later in the week that will further guide investor bets on when the U.S. Federal Reserve could start easing borrowing costs.
In Canadian corporate news, brokerage Stephens resumed coverage of TFI International (TFII.TO), opens new tab, while J.P.Morgan added the transport and logistics company’s U.S.-listed shares to its U.S. Analyst Focus List.
COMMODITIES AT 7:00 a.m. ET
Gold futures : $2,363.9; +1.1%
US crude : $86.47; +0.1%
Brent crude : $90.49; +0.1%
Reporting by Purvi Agarwal in Bengaluru; Editing by Ravi Prakash Kumar
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