S&P/TSX index futures were up 0.1% as of 06:55 ET, while their US counterparts were muted. [.N]
Canada’s benchmark index posted its biggest one-day percentage decline in four weeks in the previous session, dragged down by the energy sector after falling oil prices. [O/R]
Gold prices stabilized on Tuesday after falling more than 1% in the last session, helped by a weaker dollar. [GOL/]
Commodity prices have a major impact on Toronto stocks, as commodity and energy companies together account for almost 31% weighting in the main index.
The TSX, like its US counterparts, rallied after hitting an October low on hopes that the Federal Reserve and major central banks would scale back their aggressive approach to interest rates.
However, recent data from the US, including strong services activity data on Monday, has reignited concerns that the Fed could continue to hike rates aggressively.
The BoC will be one of the first major central banks to announce its interest rate decision in December, followed by announcements from the Fed and the European Central Bank next week.
Traders estimate a 71.5% chance of a 25 basis point hike by the BoC on Wednesday, despite the central bank set to hike interest rates by another 50 basis points, according to a Reuters poll.
In separate company news, Cenovus Energy Inc has forecast higher capital spending in 2024 as the company seeks to ramp up production in response to rising crude oil prices amid tight supply caused by sanctions on Russia.
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