(Reuters) – Futures tied to Canada’s main stock index rose on Tuesday on expectations of a bigger interest-rate cut by the U.S. Federal Reserve later this week, while losses in commodity prices capped gains.
The futures on the S&P/TSX index were up 0.2% at 6:12 a.m. ET (10:12 GMT).
Markets await the Fed’s policy decision on Wednesday, and are betting on a 65% chance of a 50-basis points cut, according to LSEG data.
The composite index hit a record high for the third straight session on Monday in anticipation of a bigger rate cut in the U.S.
Domestic investors will also parse through the consumer price index data, expected at 8:30 a.m. ET, where local inflation is expected to moderate to 2.1% in August.
The data could further open the door for the Bank of Canada’s fourth rate cut this year when it meets in late October, considering annual inflation rate hit a 40-month low in July.
The materials sector was set to grab limelight as gold prices were lower after scaling an all-time high, while copper prices edged higher. [GOL/] [MET/L]
In company news, Canadian miner First Quantum Minerals opened a voluntary retirement scheme to workers at the Cobre Panama mine as the company waits for a government decision on restarting the operation.
COMMODITIES
Gold: $2,574.62; -0.3% [GOL/]
US crude: $69.73; -0.5% [O/R]
Brent crude: $72.26; -0.7% [O/R]
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($1 = 1.3586 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Leroy Leo)
