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TSX futures jump on crude gains, US rate cut optimism

Published 2024/09/09, 12:48
Updated 2024/09/09, 12:54
© Reuters. FILE PHOTO: 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/File Photo
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(Reuters) - Futures linked to Canada's main stock index rose on Monday, benefiting from gains in crude prices, while investors are watching out for U.S. inflation data, which is due later in the week.

September futures on the S&P/TSX index were up 0.9% at 6:18 a.m. ET (10:18 GMT).

The composite index ended at an over three-week low on Friday due to declines in technology and commodity-linked shares after U.S. and Canadian jobs data came out.

Canadian unemployment rose to 6.6%, its highest level in more than seven years excluding the pandemic years.

While the U.S. employment numbers came in below analyst expectation and cemented a base case for a soft landing, it also gave jitters to the global markets over an economic slowdown in the world's largest economy.

Policymakers are widely expected to cut rates by 25-basis points in the Federal Reserve's next policy meeting on September 18..

U.S. consumer prices data is also due on Wednesday.

On the political front, the first-ever presidential debate between Democrat Kamala Harris and Republican Donald Trump on Tuesday will set the stage for the upcoming U.S. elections in November.

In Canada, the energy sector looks strong as oil prices jumped over 1% on the possibility of a hurricane hitting the U.S. Gulf Coast. [O/R]

The materials sector remained in focus as gold prices eased due to a strong dollar, while copper prices rebounded after their biggest weekly loss since mid-July. [GOL/] [MET/L]

In corporate news, Canada's Alimentation Couche-Tard said it was open to engage in talks with Japanese retail giant Seven & i Holdings after the latter rejected former's $38.5 billion takeover.

COMMODITIES

Gold: $2,404.8; -0.1% [GOL/]

US crude: $68.36; +1.0% [O/R]

Brent crude: $71.74; +1.0% [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

© Reuters. FILE PHOTO: 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/File Photo

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