S&P/TSX index futures were down 1.5% as of 7:39 a.m. EST as the global stock index touched its lowest level in two years amid fears larger rate hikes are planned to keep inflation under control . [MKTS/GLOB]
Data as of 8:30 am ET is expected to show that Canada’s retail sales fell 2% in July from June as increased inflationary pressures and higher borrowing costs weigh on the economy.
The Bank of Canada is set to meet next month and traders have almost fully priced in the likelihood of a 50 basis point rate hike.
The Toronto Stock Exchange’s S&P/TSX composite index closed down about 1% on Thursday, its lowest level in two months. The benchmark is expected to experience its fifth weekly decline in six weeks.
Energy stocks could come under pressure as prices for oil, one of Canada’s top exports, fell more than 3% on fears a global economic slowdown would hurt demand.
Gold and silver prices were also impacted by a strong dollar. [O/R] [GOL/]
The Dow E-Minis lost 365 points, or 1.21%, while the S&P 500 E-Minis lost 50 points, or 1.33%, and the Nasdaq 100 E-Minis lost 166.75 points, or 1.44%. [.N]
In company news, Link Administration Holdings Ltd’s offered deal to acquire Canadian firm Dye & Durham for AUD$2.47 billion (US$1.63 billion) has fallen through after a local court ruled that the bid would be approved, citing the failure to comply with the main conditions.
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