Canada Stocks: TSX futures subdued as investors eye BoC meeting

Valartis AG

05/12/2022 12:26

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      Traders price in 25 bps hike by BoC on Wednesday
    

  
       Dec 05 (Reuters) - Futures tracking Canada's main stock
index were subdued on Monday after registering their second
straight week of gains, with investors cautious ahead of Bank of
Canada's (BoC) monetary policy meeting later in the week.
    Futures on the S&P/TSX index  SXFc1  were flat at 6:48 a.m.
ET. The TSX gained 0.5% last week, with investors weighing
stronger U.S. and Canadian jobs data that could help determine
the pace of central bank interest rate hikes.
    The BoC will decide on interest rates on Wednesday, with
traders pricing in a 73.6% chance of a dialed-down 25-bps hike
to 4%, after the central bank had surprised markets with a
50-bps increase last month.  0#BOCWATCH 
    The aggressive rise in borrowing costs had triggered
concerns about an economic slowdown, with the commodity-heavy
TSX index down 3.5% year-to-date and bond markets showing deep
yield curve inversions - a harbinger for recession.
    The BoC has forecast that growth would stall from the fourth
quarter of this year through the middle of 2023.
    Domestic building permits data for October is due at 8:30
a.m. ET.
    Meanwhile, prices of Canada's major export oil  LCOc1 
 CLc1  jumped nearly 2% on Monday after OPEC+ nations held their
output targets steady ahead of a European Union ban and a G7
price cap which kicked in on Russian crude.  O/R 
    Focus will also be on U.S. ISM services sector data due at
10 a.m. ET for November to gauge the Federal Reserve's next move
at its rate-setting meeting later this month.  .N 
 (Reporting by Shashwat Chauhan in Bengaluru; Editing by Eileen
Soreng)
 ((johann.mcherian@thomsonreuters.com;))