Futures linked to Canada's main stock index ticked down on Tuesday as investors remained on edge ahead of domestic CPI data due later in the day, while anticipating rate-cut resumptions from the Bank of Canada and the U.S. Federal Reserve this week.
The TSX Composite Index leaped 147.20 to close Monday at 29,431.02, a fresh record.
The Canadian dollar eked ahead 0.08 cents to 72.67 cents U.S.
Futures gave back 0.2% Tuesday.
The BoC is widely expected to cut by a quarter point as a weakening labor market and slowing economic activity increase pressure on the central bank to resume its cycle of lowering rates.
Canada's antitrust regulator said it would review the proposed $53-billion merger of miners Anglo American and Teck Resources, which would be the second-largest merger in mining if approved.
Economically speaking, Statistics Canada said the Consumer Price Index (CPI) rose 1.9% year over year in August, up from a 1.7% increase in July. On a seasonally adjusted monthly basis, the CPI rose 0.2% in August.
Canada Mortgage and Housing Corporation reported housing starts The six-month trend in housing starts increased (1.6%) in August (267,259 units).
ON BAYSTREET
The TSX Venture Exchange hiked 13.31 points, or 1.5%, to 892.98.
ON WALLSTREET
S&P 500 futures rose Tuesday after a record-setting session for the benchmark index, while traders awaited the beginning of the latest Federal Reserve meeting.
Futures for the Dow Jones Industrials shrank five points, to 46,257.
Futures for the much broader index added 9.5 points, or 0.1%, at 6,688.75.
Futures for the NASDAQ gained 45.25 points, or 0.2%, to 24,596.
Oracle shares jumped nearly 5% after CBS News reported, citing sources, that the company is among a consortium of firms that would enable social media platform TikTok to keep operating in the U.S.
The S&P 500 closed above 6,600 for the first time on Monday, while the NASDAQ Composite also raced to an all-time high.
Investors appeared pleased with President Donald Trump’s positive description of trade talks with China. Several big technology stocks provided upside for the market, led by jumps of more than 4% and 3% in Alphabet and Tesla, respectively.
Traders are gearing up for the Fed’s interest rate meeting, set to begin Tuesday, with a decision expected Wednesday. Fed funds futures pricing in a 100% likelihood of at least a quarter-point rate cut.
Yet traders will still closely monitor Fed Chair Jerome Powell’s subsequent press conference for any clues on the future of monetary policy.
In Japan, the Nikkei 225 jumped 0.3%, while in Hong Kong, the Hang Seng backpedaled eight points.
Oil prices gained 43 cents to $63.73 U.S. a barrel.
Gold prices vaulted $12.20 at $3,731.20 U.S. per ounce.
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