Futures linked to Canada’s main stock exchange were muted on Thursday after the average extended its retreat from a recent all-time high in the prior session.
By 06:41 ET (10:41 GMT), the S&P/TSX 60 index standard futures contract had inched up by 1 points, or 0.1%.
On Wednesday, the S&P/TSX composite index slipped by 0.2% to end at 29,756.95, marking another leg down from a record closing high logged on Monday. But the average remained on track to post a third-quarter gain of 10.8%, which would be its fifth consecutive quarterly advance.
A drop in the price of gold from its own all-time high dented materials sector shares, including metal mining stocks.
U.S. futures subdued
U.S. stock futures traded around the flatline Thursday, as investors warily awaited the release of weekly jobless claims as a guide to future Federal Reserve monetary policy.
At 06:47 ET, Dow Jones futures gained 32 points, or 0.1%, while S&P 500 Futures slipped 5 points, or 0.1%, and Nasdaq 100 Futures dropped 36 points, or 0.1%.
The main Wall Street indices closed lower Wednesday, falling for a second straight session from record highs, with technology stocks leading the decline amid concerns around over-stretched valuations and uncertainty about the Fed’s next policy moves.
Jobs data, PCE inflation due
Sentiment has been hit of late by comments from Fed Chair Jerome Powell, who stated earlier in the week that there is “no risk-free path” for the central bank as it weighs risks from both inflation and a cooling labor market.
These cautious statements about the trajectory for interest rates following last week’s 25-basis point cut in borrowing costs have created a degree of uncertainty over the potential number of reductions the Fed will agree to this year.
With this in mind, investors will likely be carefully studying the release of weekly jobless claims data later in the session, given the worries of Fed policymakers about a weakening labor market and rising layoffs.
A final reading of second-quarter U.S. gross domestic product is also due later on Thursday, followed by one of the Fed’s preferred inflation measures, the personal consumption expenditures price index, on Friday.
Government shutdown looms
Markets are also fretting over a looming partial government shutdown as lawmakers remain locked in a funding standoff, with both chambers struggling to agree on a short-term extension.
The Senate last week rejected a Republican-backed stopgap bill that would have kept the government funded until Nov. 21, citing Democratic opposition over the exclusion of healthcare and Medicaid provisions.
A Politico report late Wednesday said that the White House budget office has instructed federal agencies to prepare layoff plans that could trigger mass firings if a government shutdown occurs next week.
Crude falls
Oil prices fell Thursday, sliding from a seven-week high amid uncertainty around the supply-and-demand outlook.
At 06:52 ET, Brent futures dropped 0.3% to $69.11 a barrel, and U.S. West Texas Intermediate crude futures fell 0.4% to $64.76 a barrel.
Both benchmarks gained 2.5% on Wednesday to their highest levels since August 1, driven by a surprise drop in U.S. weekly crude inventories and concerns Ukraine’s attacks on Russia’s energy infrastructure could disrupt supplies.
Gold ticks higher
Gold prices moved higher, with a marginally-weaker U.S. dollar lending support to the yellow metal as investors geared up for the release of more economic data.
The figures could shed more light on the path ahead for U.S. interest rates. Lower borrowing costs can reduce the opportunity cost of holding non-yielding assets such as bullion, burnishing the attractiveness of gold.
Spot gold was last up 0.6% at $3,758.63 an ounce by 06:54 ET, after sliding from Tuesday’s record peak of $3,790.82/oz. U.S. gold futures for December edged up 0.6% to $3,789.00.
Source :
https://www.investing.com/news/stock-market-news/tsx-futures-muted-after-index-extends-retreat-from-alltime-high-4255247
