Futures linked to Canada’s main stock exchange inched higher on Thursday, after a rally in technology and metal mining names pushed the index to a fresh all-time peak in the prior session.
By 07:20 ET (11:20 GMT), the S&P/TSX 60 index standard futures contract had risen by 6 points, or 0.3%.
The S&P/TSX composite index last closed up by 135.74 points, or 0.5%, at 28,751.36, notching a new record high previously set on Tuesday.
A surge in the price of gold to its own record high underpinned a climb in the TSX’s materials group, which includes shares of materials mining companies. Tech stocks also advanced by 1.4%.
The upticks helped to offset weakness in the energy sector dragged down by a slide in oil prices.
Investors are now looking ahead to the monthly employment data from Canada and the U.S. on Friday. Canada’s figures are seen as particularly crucial for the country’s central bank, which is set to unveil its latest interest rate decision on September 17. Markets are currently pricing in around a 60% probability that the Bank of Canada slashes rates by 25 basis points.
U.S. futures point up
S&P 500 and Nasdaq futures edged higher as global bond markets stabilized after a bout of selling earlier in the week and investors turned their focus to the upcoming payrolls data.
By 07:29 ET, the S&P 500 futures contract had risen by 13 points, or 0.2%, Nasdaq 100 futures had increased by 62 points, or 0.3%, and Dow futures had moved up by 30 points, or 0.1%.
Bond markets were calmed by comments from several Federal Reserve officials, including Governor Christopher Waller, which further bolstered wagers that the central bank will resume slashing interest rates at its next meeting later this month.
Meanwhile, an auction of longer-dated Japanese government debt saw tepid demand, but takeup was still enough to prevent fresh anxiety from gripping bond markets. The country’s 30-year bond yield had earlier spiked to an all-time peak. Yields tend to move inversely to prices.
The U.S. nonfarm payrolls report due on Friday is expected to provide more cues on the Fed’s rate trajectory. The figures will come just over a week before the Fed’s September 16-17 meeting, at which markets are pricing in a nearly 100% chance of a 25-basis point drawdown to borrowing costs.
On Wednesday, the benchmark S&P 500 and tech-heavy Nasdaq Composite both ended in the green, boosted by a jump in shares in Alphabet following a court ruling which spared the Google owner from having to break up its sweeping operations.
A judge on Tuesday allowed Google to keep control of its popular Chrome browser and Android operating system, but barred it from securing some exclusive contracts. Still, the decision spared a lucrative payments deal between Google and Apple, spurring on a rally in the iPhone-maker’s shares.
Gold slips
Gold prices fell on Thursday, facing some profit-taking after the yellow metal touched recent record highs, while the dollar steadied ahead of more cues on the U.S. labor market and interest rate cuts.
Spot gold slipped by 0.6% to $3,539.87/oz, while gold futures for December declined 1.0% to $3,598.10/oz by 07:30 ET.
Bullion hit a series of all-time peaks this week, amid growing conviction that the Federal Reserve will cut interest rates at its September 16-17 gathering. Fed funds futures indicated markets were pricing in a nearly 100% chance the central bank will cut rates by 25 basis points during its September 16-17 meeting, CME’s FedWatch Tool showed.
Lower rates tend to benefit non-yielding assets such as gold, given that they lower the opportunity cost of investing in the metal.
Oil ticks lower
Oil prices dipped in mid-morning European trading on Thursday, extending losses from the prior session after reports suggested that the OPEC+ was considering another output hike at an upcoming meeting.
Markets were also pressured by industry data pointing to a weekly increase in U.S. oil inventories, which exacerbated concerns over a post-summer cooldown in American fuel demand.
Brent oil futures for November fell 1.0% to $66.95 a barrel, while West Texas Intermediate crude futures slipped 1.0% to $63.34 a barrel by 07:29 ET.
Source :
https://www.investing.com/news/stock-market-news/tsx-futures-edge-higher-as-canadian-us-labor-market-data-looms-large-4224105
