TSX futures rise on commodity prices, larger US rate cut bets
Sept 13 (Reuters) -Futures tied to Canada's main stock index rose on Friday, aided by higher commodity prices, after markets raised their bets for a larger rate cut by the U.S. Federal Reserve next week.
September futures on the S&P/TSX index SXFcv1 were up 0.3% at 06:15 a.m. ET (1015 GMT).
Global markets reacted positively to a sudden spike in bets for a hefty, half-point rate cut in the United States on Sept. 18, after reports from the Financial Times and Wall Street Journal termed the imminent policy decision "a close call".
Former New York Fed President Bill Dudley's statement at a forum in Singapore pointing to a strong case for a 50-basis-point reduction also fueled investors' optimism.
Expectations for a larger U.S. rate cut stand at 43%, compared with a mere 14% a day earlier, according to CME's FedWatch tool.
Traders now look forward to U.S. import prices readings for August at 8:30 a.m. ET, along with domestic wholesale trade data for July.
Canada's energy sector was in focus on Friday as oil extended its rally and headed for a weekly gain due to Hurricane Francine disrupting output in the U.S. Gulf of Mexico. O/R
Materials shares were expected to rise as gold prices hit another record high on U.S. rate cut hopes and copper touched a two-week peak amid stimulus hopes in China. GOL/ MET/L
The TSX composite index .GSPTSE hit a record high in the previous session as mining shares gained on higher gold prices.
In corporate news, TC Energy's TRP.TO Coastal GasLink pipeline in western Canada had been fined C$590,000 ($434,558) for 10 environmental non-compliance penalties.
COMMODITIES
Gold XAU=: $2,566.89; +0.32% GOL/
US crude CLc1: $69.76; +1.15% O/R
Brent crude LCOc1: $72.63; +0.92% 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 = 1.3575 Canadian dollars)
Reporting by Nikhil Sharma; Editing by Shreya Biswas
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
