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TSX futures muted as losses in gold offset US rate-cut hopes

Published 22/08/2024, 09:29 pm
© Reuters. The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019.   REUTERS/Chris Helgren/File Photo
CAD/USD
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(Reuters) - Futures linked to Canada's main stock index were muted on Thursday as losses in gold prices countered investor optimism around U.S. rate-cut hopes in September.

September futures on the S&P/TSX index were unchanged at 0.0% at 6:51 a.m. ET (10:51 GMT).

Materials shares will be in the spotlight as gold prices fell on a firm dollar, while copper prices rose. [GOL/] [MET/L]

The energy sector will also remain in focus as oil prices edged higher. [O/R]

The S&P/TSX composite index notched a record high in the previous session, boosted by tech shares on increased prospects of lower borrowing costs globally.

Minutes from the U.S. Federal Reserve's July policy meeting showed on Wednesday a "vast majority" of policymakers said a September rate cut would be likely.

Data-wise, investors will now parse through weekly jobless claims and purchasing managers index (PMI) surveys out of the United States, which can shed more insight into the health of the economy.

However, the event of the week will be Fed Chair Jerome Powell's speech at the Jackson Hole Economic Symposium on Friday.

Traders will follow the commentary for hints of the Fed reducing U.S. interest rates next month, where market participants are pricing in a 69.5% chance of a 25-basis points cut.

In Canada, investors geared up for bank earnings, started by Toronto-Dominion Bank that reported a quarterly loss.

Canadian National Railway (TSX:CNR) and Canadian Pacific Kansas City shut down their rail networks in the country and locked out about 10,000 workers after labor talks with the Teamsters union failed.

COMMODITIES

Gold: $2,507.40; -0.18% [GOL/]

US crude: $72.14; +0.29% [O/R]

Brent crude: $76.37; +0.42% [O/R]

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report (TO)

Canadian dollar and bonds report [CAD/] [CA/]

Reuters global stocks poll for Canada

© Reuters. The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019.   REUTERS/Chris Helgren/File Photo

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($1 = 1.3579 Canadian dollars)

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