Tuesday saw a little decline in futures for Canada’s main stock index as precious metals prices dropped. Investors were waiting for further information on the central bank’s interest-rate path as they expected producer prices data and another US inflation report.
At 6:45 a.m. ET (10:45 GMT), June futures on the S&P/TSX index were down 0.2%.
The consumer price inflation (CPI) rate decreased to 2.7% last month, while core measures continued to fall, bringing the CPI closer to the Bank of Canada’s 2% objective. As a result, markets will be closely watching the producer prices data for April, which is scheduled for release at 0830 ET.
Investors will be keeping an eye on the personal consumption expenditure (PCE) price index later this week to determine when the US Federal Reserve may decide to lower interest rates. The PCE price index is the preferred measure of inflation used by the US Federal Reserve.
With gold and silver prices falling ahead of important U.S. inflation statistics, attention will be focused on the materials sector, which is home to Canada’s precious and base metal miners.
Nonetheless, base metal prices increased due to China’s efforts to assist the real estate industry, a declining value of the dollar, and the possibility of interest rate reduction by the European Central Bank.
Energy shares may potentially be impacted by the increase in oil prices as expectations of robust summer fuel consumption in the United States and the possibility that OPEC+ would continue production constraints at its June 2 meeting offset concerns about higher-for-longer U.S. rates.
The S&P/TSX composite index of the Toronto Stock Exchange closed Monday’s trading session higher, drawing nearer to the record closing high of 22,468.16 set last week.
After investors returned from their long weekend, stock index futures in the United States slightly increased.
Bank of Nova Scotia posted lower second-quarter earnings as a result of increasing its loan loss reserves, which it put in place in case its clients default on their debt in an unstable economic climate.
AT 6:45 a.m. ET, COMPONENTS
Futures for gold: $2,346.1; -0.5%
US oil: $79.02, up 1.7%
Crude oil Brent: $83.34; up 0.3%
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