(Reuters) – Futures for Canada’s main stock index jumped nearly 2% on Thursday, mirroring gains in U.S. equity futures, after the U.S. Federal Reserve’s outsized interest-rate cut raised hopes of a soft landing for the U.S. economy.
The futures on the S&P/TSX index were up 1.9% at 7:26 a.m. ET (11:26 GMT).
The composite index ended lower on Wednesday due to oil prices weighing on energy shares and profit booking by investors on recent market gains.
Wall Street futures and global markets rallied on Thursday on the Fed’s half-point cut in interest-rate, which were at an over two-decade high. [.N]
Policymakers said they see another 50-basis-point cut this year as inflation is near the Fed’s 2% goal, and as they seek to preempt further labor market weakness.
Focus will be on the U.S. weekly jobless claims numbers at 08:30 a.m. ET, as it will help gauge the health of the labor market.
Canada’s heavyweight energy sector was under focus as oil prices rose after a larger-than-usual Fed rate cut. [O/R]
The materials sector could also track a jump in gold and copper prices with the beginning of the Fed policy easing cycle. [GOL/] [MET/L]
In corporate news, Canadian restaurant company Pizza Pizza Royalty announced its monthly cash dividend of $0.0775 per share for September 2024.
COMMODITIES
Gold: $2,585.88; +1.06% [GOL/]
US crude: $71.45; +0.76% [O/R]
Brent crude: $74.26; +0.83% [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
Canadian markets directory
($1 = 1.3546 Canadian dollars)
(Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo)
