Early on Wednesday, futures for Canada’s resource-driven primary stock index showed a slight downturn, echoing the dip in gold prices, as investors anticipated insights from the Bank of Canada’s recent meeting for indications on future interest rate adjustments.
At 7:28 a.m. ET (12:28 GMT), March futures for the S&P/TSX index edged down by 0.3%, while their counterparts in the U.S. remained steady.
Gold and non-ferrous metal prices exhibited minimal movement as the Chinese New Year holiday approached and investors awaited statements from U.S. Federal Reserve officials.
Conversely, energy sector shares appeared poised for further gains following the previous session’s uptick, buoyed by oil price increases driven by lower-than-expected growth in U.S. crude inventories and a downward revision in output growth forecasts, which alleviated concerns of potential oversupply.
Bank of Canada Governor Tiff Macklem underscored on Tuesday the need for additional time for monetary policies to mitigate inflationary pressures, cautioning that altering interest rates may not effectively curb housing costs.
In its recent policy meeting on January 24, the Canadian central bank opted to maintain its key overnight rate, although policymakers signaled a shift in focus towards potential rate cuts.
The meeting’s minutes are scheduled for release at 1:30 p.m. ET on Wednesday.
On Tuesday, the S&P/TSX composite index of the Toronto Stock Exchange closed with a 0.4% gain, supported by industrial and financial sector stocks, rebounding from Monday’s nearly three-week low.
In corporate news, ATS Corp, a provider of automation solutions, reported third-quarter revenues exceeding analysts’ expectations.
Canadian Trade Minister Mary Ng announced plans on Tuesday to provide assistance to First Quantum, a mining company grappling with the repercussions of the closure of its primary copper mine in Panama.
