TSX futures inch lower on weak crude prices; CPI on watch
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(Reuters) – Futures for Canada’s main stock index edged down on Tuesday as oil prices declined, while investors awaited key domestic inflation readings and the U.S. Federal Reserve’s November meeting minutes.
December futures on the S&P/TSX index were down 0.2% at 7:31 a.m. ET (1231 GMT).
Oil prices fell on Tuesday, reversing steep gains made in the past two sessions, as investors turned cautious ahead of a meeting of OPEC+ this Sunday when the producer group may discuss deepening supply cuts due to slowing global growth. [O/R]
Canada’s consumer prices index(CPI) report for October, due at 8:30 a.m. ET, is expected to show that inflation cooled to 3.2% from 3.8% in September, according to a Reuters poll.
The crucial inflation readings will provide clues to the Bank of Canada’s outlook for short-term interest rates after the central bank held its benchmark interest rate steady at 5% at its policy meeting last month.
Across the border, market participants will be keenly looking at the minutes of the Fed’s November meeting for indications of the Fed’s interest rate trajectory.
The Toronto Stock Exchange’s S&P/TSX composite index ended Monday 0.35% higher.
Canada’s main stock index is set to rise less than previously thought over the coming year as a slowdown in the global economy weighs on the outlook for corporate earnings, with investors favoring value over growth stocks, a Reuters poll found.
On the company front, First Quantum Minerals will carry out maintenance at its Panama mine from Nov. 23 due to coal supplies being blocked by protestors opposing the government’s contract with one of the world’s biggest and newest copper mines, two sources familiar with the discussions said on Monday.
COMMODITIES AT 7:31 a.m. ET
Gold futures: $1,989.8; +0.5% [GOL/]
US crude: $77.67; -0.2% [O/R]
Brent crude: $82.17; -0.2% [O/R]
(Reporting by Siddarth S in Bengaluru; Editing by Tasim Zahid)