TSX futures muted as commodities decline amid rate cut hopes
July 8 (Reuters) -Futures linked to Canada's main stock index were flat on Monday as losses in commodity prices were offset by rising hopes of the U.S. Federal Reserve cutting interest rates as early as September.
S&P/TSX 60 futures SXFcv1 were down 0.07% by 06:04 a.m. ET (10:04 GMT), after the benchmark index fell on Friday amid fears of recession. .TO
Declines in oil prices LCOc1, CLc1, triggered by hopes of a potential ceasefire in Gaza that could allay tensions in the Middle East, are expected to weigh on the energy sector. O/R
Gold XAU= prices slipped, pulled down by investors rushing to book profits after the precious metal crossed a one-month high. Copper prices also eased due to dull physical consumption and high inventories in China. GOL/ MET/L
Wall Street futures were also subdued on Monday after Nasdaq .IXIC and S&P 500 .SPX hit closing highs in the previous session after the latest U.S. jobs data showed the unemployment rate hit a 2-1/2-year high in the country.
Market participants are pricing in a 73.8% likelihood of the commencement of the easing cycle by the U.S. central bank in September. FEDWATCH
Canada's jobs report, which showed domestic unemployment climbed to a 29-month-high, also triggered hopes of another rate cut by the Bank of Canada. The BoC, which lowered interest rates last month, is holding its next policy meeting on July 24.
Traders are pricing in a 60.7% chance of a 25-basis points rate cut by the Canadian Central Bank. 0#BOCWATCH
In corporate news, the Grifols family and Canadian asset management fund Brookfield BN.TO agreed to launch a joint takeover bid for Spanish drugmaker Grifols GRLS.MC with the intent to delist it.
This week also marks the start of the earnings season with major U.S. banks, including Citigroup C.N, JPMorgan Chase JPM.N and Wells Fargo WFC.N, reporting quarterly results on Friday.
COMMODITIES
Gold XAU=: $2370.73; -0.87% GOL/
US crude CLc1: $82.21; -1.14% O/R
Brent crude LCOc1: $85.73; -0.94% 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 = 1.3631 Canadian dollars)
Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya Biswas
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