Futures for Canada’s resource-heavy stock index experienced a rise on Wednesday, propelled by increased metal prices and the S&P 500 reaching a new high in the previous session. Investors remained focused on the Bank of Canada’s interest rate meeting scheduled for later in the day.
March futures on the S&P/TSX index were up 0.6% at 7:04 a.m. ET (12:04 GMT).
“Gold eked out gains on a softer dollar amid a wait for cues on the Federal Reserve’s rate cut path. Copper prices advanced on reinforced hopes of more stimulus measures from top metals consumer China.”
All attention is on the Bank of Canada’s decision in its monetary policy meeting at 9:45 a.m. ET, expected to offer clarity on the timing of interest rate cuts this year. The central bank is anticipated to maintain its overnight rate this time, releasing fresh inflation and growth forecasts that may shed light on the BoC’s perspective on when borrowing costs might begin to ease.
Market participants currently foresee a rate cut only in April, with a 52.5% chance of it occurring.
The index had a subdued start to the year due to economic data showing persistent inflation, leading investors to lower expectations of an early rate cut. However, the Toronto Stock Exchange’s S&P/TSX composite index ended higher on Tuesday, marking its fourth consecutive day of gains and achieving its highest closing level since Jan. 15.
In company news, Canadian National Railway reported a higher fourth-quarter profit on Tuesday. Conversely, U.S.-listed shares of tech firm Blackberry plummeted 10.4% in premarket trading following the announcement of a private offering of $160 million in five-year convertible bonds.
Commodities at 7:04 a.m. ET:
- Gold futures: $2,034.8; +0.4%
- US crude: $74.13; -0.3%
- Brent crude: $79.24; -0.4%