(Reuters) – Futures tied to Canada’s main stock index rose on Friday, aided by higher commodity prices, after markets raised their bets for a larger rate cut by the U.S. Federal Reserve next week.
September futures on the S&P/TSX index were up 0.3% at 06:15 a.m. ET (1015 GMT).
Global markets reacted positively to a sudden spike in bets for a hefty, half-point rate cut in the United States on Sept. 18, after reports from the Financial Times and Wall Street Journal termed the imminent policy decision “a close call”.
Former New York Fed President Bill Dudley’s statement at a forum in Singapore pointing to a strong case for a 50-basis-point reduction also fueled investors’ optimism.
Expectations for a larger U.S. rate cut stand at 43%, compared with a mere 14% a day earlier, according to CME’s FedWatch tool.
Traders now look forward to U.S. import prices readings for August at 8:30 a.m. ET, along with domestic wholesale trade data for July.
Canada’s energy sector was in focus on Friday as oil extended its rally and headed for a weekly gain due to Hurricane Francine disrupting output in the U.S. Gulf of Mexico. [O/R]
Materials shares were expected to rise as gold prices hit another record high on U.S. rate cut hopes and copper touched a two-week peak amid stimulus hopes in China. [GOL/] [MET/L]
The TSX composite index hit a record high in the previous session as mining shares gained on higher gold prices.
In corporate news, TC Energy’s Coastal GasLink pipeline in western Canada had been fined C$590,000 ($434,558) for 10 environmental non-compliance penalties.
COMMODITIES
Gold: $2,566.89; +0.32% [GOL/]
US crude: $69.76; +1.15% [O/R]
Brent crude: $72.63; +0.92% [O/R]
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($1 = 1.3575 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Shreya Biswas)
