Futures linked to Canada’s main stock market were subdued on Wednesday, after a surge in gold prices helped lift the index to a fresh record high in the prior session.
By 06:36 ET (10:36 GMT), S&P/TSX 60 index standard futures inched down marginally by 0.04%.
On Tuesday, the S&P/TSX composite index ended trading at 28,615.62, an increase of 0.2% that surpassed a prior all-time peak reached last week. The average was closed on Monday.
The wider materials sector outperformed, underpinned by a rally in gold prices to new records as well as a climb in copper prices. Energy stocks were also bolstered by an uptick in oil prices.
The real estate segment lagged, pulled down by a rise in Canada’s 10-year yield, which reflected a jump in longer-dated government bond yields across the world spurred on by renewed fiscal concerns. Yields tend to move inversely to bond prices.
S&P, Nasdaq futures higher
S&P 500 and Nasdaq futures pointed higher on Wednesday following a downbeat session to begin a holiday-shortened trading week, as sentiment was bolstered by an antitrust ruling against Google-parent Alphabet that included less severe penalties than those proposed by the Justice Department.
The main averages fell on Tuesday, as investors returned following the Labor Day holiday to a sell-off in longer-dated U.S. government debt, spurred on by renewed concerns over the country’s fiscal position.
Fresh uncertainty was also lingering over the trajectory of sweeping U.S. tariffs, especially in the wake of a ruling late last week from a U.S. appeals court that most of President Donald Trump’s import levies were illegal.
The decision, which the Trump administration has vowed to appeal to the Supreme Court, cast doubt over the White House’s ability to use the duties as a tool in international economic policy -- and comes as a court is likely to weigh in on a separate effort by Trump to dismiss Federal Reserve Governor Lisa Cook.
While the indices finished off their lowest levels of the day, the Cboe Volatility Index -- a crucial fear measure -- ticked higher.
The blue-chip Dow Jones Industrial Average shed 0.6%, the benchmark S&P 500 dipped by 0.7%, and the tech-heavy Nasdaq Composite fell by 0.8%. It was a relatively dour opening to September, a month traditionally viewed as one of the worst for U.S. stocks.
Gold touches record peak
Gold prices steadied, hitting an all-time peak as persistent concerns over global fiscal health and U.S. trade tariffs kept traders biased towards safe haven assets.
Spot gold had inched up by 0.1% to $3,538.37 an ounce, while gold futures for December were up 0.4% to $3,606.37/oz by 06:47 ET. Spot gold briefly hit a record high of $3,547.09/oz earlier in the session.
But bullion’s gains were held back by a recovery in the dollar, which recouped a bulk of its losses this week as the sell-down in government bonds across the globe pushed traders into the greenback.
Oil drops
Oil prices moved lower in late-morning European trading on Wednesday, inching back from around a one-month high, as traders geared up for an upcoming meeting of key producer group.
Markets were broadly focused on the gathering of the Organization of the Petroleum Exporting Countries and its allies -- known commonly as OPEC+ -- this weekend, where the group is widely expected to leave production quotas unchanged after a series of hikes this year.
OPEC+ has said it would raise output targets by roughly 2.2 million barrels per day from April to September, along with a 300,000 bpd quote uptick for the UAE. Still, the market has remained relatively tight, as some some countries struggle to pump more oil and others are being told by OPEC+ to rein in output after previously producing above their quotas.
Prior to the OPEC+ meeting, investors will also be gauging U.S. inventory data. Demand in the world’s biggest fuel consumer is expected to have cooled in recent weeks, as the travel-heavy summer season comes to a close.
Inventory figures from the American Petroleum Institute and the Energy Information Administration are set to be released on Thursday and Friday, respectively.
Source :
https://www.investing.com/news/stock-market-news/tsx-futures-muted-after-gold-surge-helps-lift-toronto-stock-market-to-new-high-4221245
