(Reuters) – Futures for Canada’s resource-heavy stock index rebounded on Wednesday, tracking gains on Wall Street after sharp losses in the previous session on hot U.S. inflation data, with further support from rising crude prices.
March futures on the S&P/TSX index were up 0.8% at 7:29 a.m. ET (12:29 GMT).
Wall Street futures recovered some ground from a sharp sell-off in the previous session after a hotter-than-expected January inflation print from the U.S. on Tuesday dampened hopes of early rate cuts by the Federal Reserve [.N]
The Toronto Stock Exchange’s S&P/TSX composite index ended down 2.3% on Tuesday, falling by the most in 17 months.[.TO]
Rate-sensitive technology stocks led the declines on Tuesday amongst its sectoral peers.
Yield on the Canadian 10-year government bond also inched lower to 3.635%, tracking a similar fall in its U.S. counterpart, poised to support equities.
Back on the TSX, energy shares are expected to snap their two-day losing streak as oil prices held on to Tuesday’s gains on a robust demand growth forecast from producer group OPEC and a sharp decline in U.S. fuel inventory. [O/R]
Metal miners could take a hit as gold prices languished below the $2,000-per-ounce mark, and copper prices slipped as speculators stepped up selling on rate cut concerns. [GOL/][MET/L]
Investors will also keenly monitor corporate earnings in Canada with the largest insurer Manulife Financial and gold miners like Dundee Precious Metals and Kinross Gold among others set to report their quarterly results after the bell on Wednesday.
In corporate news, miner Barrick Gold beat analysts’ estimates for fourth-quarter profit, helped by robust gold production and higher prices.
COMMODITIES AT 7:29 a.m. ET
Gold futures: $1,994.1; -0.2% [GOL/]
US crude: $78.07; +0.3% [O/R]
Brent crude: $83.03; +0.3% [O/R]
(Reporting by Purvi Agarwal in Bengaluru; Editing by Ravi Prakash Kumar)
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