CANADA STOCKS-TSX futures rise as Fed rate cuts prospects continue to boost sentiment
Futures for Canada's main stock index rose 0.16% as optimism continued following U.S. inflation data that bolstered expectations for a Federal Reserve rate cut in September. The S&P/TSX composite index reached a record high, with traders anticipating at least two rate reductions by the end of 2025. Gold and copper prices increased, while oil prices fell due to supply forecasts. The Bank of Canada is set to release a summary of its last policy decision, and Air Canada is seeking federal intervention in contract negotiations with its flight attendants' union.
Aug 13 (Reuters) - Futures tracking Canada’s main stock index rose on Wednesday, extending optimism from the previous record-breaking session, following U.S. inflation data that supported expectations for a September rate cut.
Futures on the S&P/TSX index (.SXFcv1) rose 0.16% by 05:31 a.m. ET (0931 GMT).
On Tuesday, the S&P/TSX composite index (.GSPTSE) ended at a record closing high, as a mild July CPI report from the U.S. suggested a limited impact of tariffs on prices, reinforcing bets for the Federal Reserve rate cut in September.
Traders have fully priced in a September rate cut and view at least two reductions by the end of 2025, according to the CME Group’s FedWatch tool.
The increased prospects of a Fed rate cut also boosted gold and copper prices for the day. (GOL/)
Oil prices, however, fell after the International Energy Agency forecasts indicated supply may overtake demand this year. (O/R)
The oil markets are also bracing for a high-stakes meeting between U.S. President Donald Trump and Russian President Vladimir Putin to discuss a potential end to the war in Ukraine.
Toronto’s resource-heavy benchmark index is more vulnerable to swings in commodity prices, prompting domestic investors to stay alert to geopolitical events that affect commodities.
Wall Street futures also edged up on Wednesday following record closing highs for the S&P 500 and the Nasdaq indexes in the previous session.
Later in the day, the Bank of Canada will release the Governing Council deliberations summary for the last policy decision, when it kept rates unchanged and indicated future cuts if the economy weakens further and inflation remains contained.
In other developments, Air Canada (AC.TO) on Tuesday asked for federal government intervention in contract talks with its flight attendants’ union, after the airline declared an impasse in the negotiations.
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