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TSX futures flat as investors await domestic inflation data

Published 20/02/2024, 11:56 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
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(Reuters) - Futures for Canada's main stock index were flat on Tuesday as investors remained cautious ahead of key domestic inflation data despite gains in prices of base and precious metals.

March futures on the S&P/TSX index were flat at 7:09 a.m. ET (12:09 GMT).

A January reading of the consumer prices in Canada is due at 8:30 a.m. ET, which will provide more details on inflation and the Bank of Canada's interest rate path.

"Any surprise will be met by overreaction in markets even though this number will determine nothing as the BoC has made it clear they are on a longer-lived period of monitoring data and developments," Derek Holt, vice-president and head of Capital Markets Economics at Scotiabank said in a note.

Hotter-than-expected U.S. inflation data last week had dampened investor hopes of an early rate cut from the Federal Reserve.

Minutes from the Federal Reserve's last policy meeting are also due later this week.

On the TSX, mining stocks could see a fourth day of gains as gold prices ticked higher on a softer U.S. dollar, whereas copper prices advanced after top consumer China cut mortgage rates to support the economy. [GOL/] [MET/L]

Energy shares are expected to slip following two sessions of gains as oil prices turned red after trading higher earlier in the day. [O/R]

Corporate earnings continue to gain momentum with Canadian miners, including First Quantum amongst other companies, set to report their quarterly results in the week.

The Toronto Stock Exchange's S&P/TSX composite index ended 0.2% higher at 21,255.61 on Friday, its highest closing level since April 2022, on a boost from resource-linked shares.

The index had gained 1.2% in the week, snapping a two-week losing streak.

In corporate news, Canadian retailer Loblaw said today it expected to invest more than C$2 billion ($1.48 billion) this year to create more than 7,500 jobs.

COMMODITIES AT 7:09 a.m. ET

Gold futures: $2,027.5; +0.7% [GOL/]

© 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

US crude: $78.83; -0.5% [O/R]

Brent crude: $82.89; -0.8% [O/R]

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