TSX futures flat as rate cut speculation offsets oil, gold drop

TSX futures flat as rate cut speculation offsets oil, gold drop Image/REUTERS

VoM News Desk | May 7, 2024 | 05:09 PM IST | World | Follow on Google News

TSX futures flat as rate cut speculation offsets oil, gold drop

TSX futures flat as rate cut speculation offsets oil, gold drop

May 7 (Reuters) – Futures for Canada’s main stock index were muted on Tuesday, as declines in oil and gold prices were offset by reviving investor hopes of central banks cutting interest rates later in the year.

June futures on the S&P/TSX index were up 0.1% at 6:40 a.m. ET (10:40 GMT).

Oil prices were steady as weakness in the physical market countered concerns about a Middle East conflict as Israel stepped up attacks in southern Gaza and a ceasefire deal between Hamas and Israel hung in the balance.

Gold prices slipped on a firmer dollar, while copper prices pushed towards two-year highs as focus returned to tight supplies and hopes of stronger demand in top consumer China.

Meanwhile, futures tracking the S&P 500 and Dow edged higher on Tuesday in the U.S. after Wall Street closed higher on Monday in its third session of advances.

Investor sentiment was buoyed after data showed on Friday that U.S. job growth had slowed in April, and annual wage gains had cooled, adding to bets of a September rate cut by the Fed.

Furthermore, New York Fed President John Williams said on Monday that the central bank’s next move would be to likely lower rates at some undefined point.

The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE), opens new tab also ended 1.42% higher on Monday, closing at its highest in over three weeks and logging its best day in nearly three months.

On the corporate front, quarterly earnings will pick up more pace with Ballard Power Systems (BLDP.TO), opens new tab among others set to report their figures before the bell on Tuesday.

COMMODITIES AT 6:40 a.m. ET

Gold futures : $2,323; -0.4%

US crude : $78.32; -0.2%

Brent crude : $83.14; -0.2%

(Except for the headline, this story has not been edited by VoM News staff and is published from syndicated feed)

VoM News Desk

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