TSX futures dip ahead of BoC rate decision

TSX futures dip ahead of BoC rate decision By Reuters

Breaking News


Economy 24 minutes ago (Jan 25, 2023 07:26AM ET)

(C) Reuters. The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren

(Reuters) – Futures tracking Canada’s main stock index fell on Wednesday, as investors feared the Bank of Canada will opt for further interest rate hikes later in the day, while dour corporate earnings in the U.S. added to the gloom.

Futures on the S&P/TSX index were down 0.4% at 6:51 a.m. ET (1151 GMT), mirroring declines in their U.S. counterparts.

The BoC is expected to raise interest rates to a 15-year high in the face of a tight job market and above-target inflation, but economists say the move could be the last in the current tightening cycle.

A Reuters poll of economists showed the BoC will hike its benchmark rate by 25-basis-points to 4.50% at 10:00 a.m. ET.

The BoC was one of the first major developed world central banks to start hiking its overnight lending rate last year, raising at an unprecedented pace of 400 basis points in nine months.

It will be the first time where the central bank will offer minutes from its policy-setting session, which will be published on Feb. 8.

Further weighing on sentiment were corporate earnings in the United States, after tech giant Microsoft (NASDAQ:MSFT) warned that growth in its cloud business could stall.

Commodity prices, which tend to influence the resources-heavy TSX, were a mixed bag.

Crude oil prices slipped as a rise in U.S. crude inventories and global recession worries edged out optimism for a demand recovery in China. [O/R]

Gold prices declined against a firmer dollar, while copper prices inched higher. [GOL/] [MET/L]

Results from Canadian National Railway (TSX:CNR) showed fourth-quarter earnings beat market expectations.

A Canadian court on Tuesday dismissed the competition bureau’s effort to overturn an approval of Rogers (NYSE:ROG) Communications Inc’s C$20 billion ($14.9 billion) bid to buy Shaw Communications (NYSE:SJR) Inc.

TSX futures dip ahead of BoC rate decision

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2023 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

About the author