CANADA STOCKS-TSX futures fall as precious metals extend losses

Futures for Canada's resource-heavy stock index fell 0.3% as metal prices continued to decline, following a significant drop in the previous session. The Toronto Stock Exchange's composite index experienced its largest decline since April, driven by falling gold prices and inflation data that reduced expectations for a Bank of Canada interest rate cut. Meanwhile, oil prices rose amid supply risks and trade deal hopes, while geopolitical uncertainties persisted. Market participants are awaiting key economic indicators, including U.S. consumer price index and Canadian retail sales figures.

Oct 22 (Reuters) - Futures linked to Canada’s resource-heavy main stock index fell on Wednesday following a sharp decline in the previous session, pressured by ongoing weakness in metal prices and uncertainty surrounding trade and geopolitical issues.

December futures on the S&P/TSX index (SXFcv1) were down 0.3% at 05:54 a.m. ET (0954 GMT).

The Toronto Stock Exchange’s composite index (.GSPTSE) posted its biggest decline since April on Tuesday as gold prices (XAU=) pulled back sharply and hotter-than-expected inflation data diminished expectations for an imminent Bank of Canada interest rate cut.

The precious metal tumbled more than 5% in the previous session and continued to decline on Wednesday, falling 1.4%, while silver prices also dropped 1%. (GOL/)

Similarly, Shanghai copper prices retreated as trader enthusiasm waned due to weak Chinese demand and a strengthening U.S. dollar. (MET/L)

Oil prices (LCOc1) , (CLc1) , on the other hand, pushed higher for a second day, buoyed by sanctions-related supply risks and hopes of a U.S.-China trade deal. (O/R)

Geopolitics loomed large over global markets after a planned summit between U.S. President Donald Trump and Russian President Vladimir Putin was put on hold and ambiguity lingered over a potential meeting between Trump and Chinese President Xi Jinping.

Despite Washington and Beijing striking a more conciliatory tone in recent times, Trump added to the uncertainty over the meeting on Tuesday, saying that “maybe it won’t happen”.

Market participants now await Friday’s release of the U.S. consumer price index - a critical inflation indicator that could provide insights into monetary policy trajectory of the Federal Reserve.

Additionally, Canadian retail sales figures, due on Thursday, will offer a glimpse into domestic consumer spending patterns.

In corporate news, miner Teck Resources (TECKb.TO) beat third-quarter profit estimates on Wednesday, helped by higher copper and zinc prices.

CANADA STOCKS-TSX futures fall as precious metals extend losses

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