(Reuters) – Futures tied to Canada’s main stock index were muted on Wednesday, as investors remained cautious about the size of an interest rate cut by the U.S. Federal Reserve later in the day.
The futures on the S&P/TSX index were down 0.06% at 6:00 a.m. ET (10:00 GMT).
The U.S. Fed’s policy decision is due at 1400 ET, and the central bank is almost certainly expected to announce its first interest rate cut in more than four years.
Markets are betting on a 65% chance of a 50-basis point reduction and a 35% chance of a 25-basis point cut.
Fed rate cuts typically benefit commodity prices, especially precious and base metals, which could provide a boost to Canada’s resource-heavy stock market.
In the previous session, Toronto’s composite index snapped its three-day streak of record closing highs due to losses in industrial and consumer staples sectors.
Canada’s energy sector came under pressure as oil fell after an industry report showed an increase in U.S. crude and fuel inventories. [O/R]
The materials sector is in focus as gold prices eased, while copper prices nursed losses ahead of key U.S. Fed decision.
In corporate news, Barrick Gold suspended operations at its Porgera gold mine in Papua New Guinea until Thursday after tribal violence in the region killed at least 20.
COMMODITIES
Gold futures: $2,569.7; +0.01% [GOL/]
US crude: $69.96; -1.7% [O/R]
Brent crude: $72.49; -1.6% [O/R]
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($1 = 1.3585 Canadian dollars)
(Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo)
