Toronto futures slip as inflation worries weigh

(Reuters) – Futures for Canada’s main stock index edged lower on Tuesday as global equities reeled on worries that surging energy prices would fuel inflation and force the U.S. Federal Reserve to raise rates.

December futures on the S&P/TSX index were down 0.05% at 7:00 a.m. ET.

Concerns that higher inflation could prompt a sooner-than-expected dial down of economic stimulus by central banks and a slowdown in global economic recovery have rattled investors appetite for risky assets.

The Toronto Stock Exchange’s S&P/TSX composite index was closed on Monday for the Thanksgiving Day holiday after closing 1.1% higher at 20,416.3 on Friday, its highest closing level since Sept. 27. [.TO]

Dow e-minis were down 12 points, or 0.03% at 7:01 a.m. ET, while S&P 500 e-minis were up 1.25 points, or 0.03% and Nasdaq 100 e-minis were up 31.75 points, or 0.22%. [.N]

TOP STORIES [TOP/CAN]

The Dutch owner of bike brands including Gazelle, Santa Cruz and Urban Arrow said on Monday it has agreed to buy brands including Cannondale, Schwinn and Mongoose from owner Dorel Industries Inc. for $810 million, creating one of the largest bike makers globally with $2.5 billion in estimated annual sales.

Canada’s Rock Tech Lithium plans to build a converter plant in Brandenburg, the German state surrounding Berlin, to make battery-grade lithium hydroxide for electric vehicles, the state’s energy ministry and the company said on Monday.

ANALYST RESEARCH HIGHLIGHTS [RCH/CA]

Air Canada: Raymond James cuts target price to C$30 from C$35

Dye & Durham Ltd: Canaccord Genuity cuts target price to C$55 from C$60

Shawcor Ltd SCL.TO: ATB Capital Markets cuts to “sector perform” from “outperform”

COMMODITIES AT 7:00 a.m. ET

Gold futures: $1,127.7; -+1.0% [GOL/]

US crude: $46.39; -+0.64% [O/R]

Brent crude: $49.85; -+0.6% [O/R]

U.S. ECONOMIC DATA DUE ON TUESDAY

1000 JOLTS job openings for Aug : Expected 10.925 mln; Prior 10.934 mln

(Reporting by Amal S in Bengaluru; Editing by Anil D’Silva)

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