Canada Stocks: TSX futures decline ahead of CPI data

Neo Performance Materials

20/08/2024 12:31

Aug 20 (Reuters) - Futures linked to Canada's main stock
index fell on Tuesday as investor caution ahead of inflation
data weighed on risk appetite and countered gains in gold
prices.
    September futures on the S&P/TSX index  SXFcv1  were down
0.1% at 6:29 a.m. ET (1029 GMT).
    The materials sector is expected to grab focus, with gold
having hit a record high as the dollar weakened and investors
bought into the bullion amid bets of a U.S. rate cut.  GOL/ 
    Oil prices, however, eased on reduced fear over supply
disruptions after Israel accepted a proposal to resolve
disagreements blocking the ceasefire deal in Gaza.  O/R 
    The S&P/TSX composite index  .GSPTSE  closed at a record
high on Monday, boosted by financial and metal mining shares.   
    Investors will be keeping an eye on the U.S. Federal Reserve
Chair Jerome Powell's commentary at the Jackson Hole Economic
Symposium on Friday, amid acknowledgments of a possible rate cut
in September.
    Markets expect a 25-basis points reduction at the U.S.
central bank's policy meeting next month.  0#FEDWATCH  
    Reduced U.S. borrowing costs could help stimulate consumer
spending and corporate investments in the country, while also
prompting higher trade between the United States and Canada.
    Back home, investors will also focus on Canada's consumer
price index numbers due at 8:30 a.m. ET.
    The data is expected to show domestic inflation to be
moderate to 2.5% on a yearly basis, adding to the narrative of
cooling inflation and further solidifying bets for another cut
by the Bank of Canada. 
    In corporate news, Neo Performance Materials  NEO.TO  has
agreed to sell majority equity interest of China rare earth
separation assets for $30 million.
    
    COMMODITIES 
    Gold  XAU= : $2,523.87; +0.80%  GOL/ 
    US crude  CLc1 : $74.39; 0.0%  O/R 
    Brent crude  LCOc1 : $77.79; 0.2%  O/R 
    

    
    FOR CANADIAN MARKETS NEWS, CLICK ON CODES:
    TSX market report  .TO 
    Canadian dollar and bonds report  CAD/   CA/ 
    Reuters global stocks poll for Canada  EQUITYPOLL1 
 EPOLL/CA 
    Canadian markets directory  CANADA 
 
1.3613

($1 = 1.3613 Canadian dollars)

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya
Biswas)
 ((Nikhil.Sharma@thomsonreuters.com;))