(Reuters) – Futures for Canada’s main stock index tumbled on Wednesday tracking a decline in commodity prices, as investors assessed big bank earnings in Canada and awaited key inflation data from the United States.
March futures on the S&P/TSX index were down 0.6% at 6:52 a.m. ET (11:52 GMT), mirroring losses in the Wall Street peers. [.N]
The Toronto Stock Exchange’s S&P/TSX composite index ended 0.03% lower on Tuesday, as losses in financial shares offset gains in energy. [.TO]
Energy shares are expected to reverse two days of gains on a 1% decline in oil prices, as the prospect of delays in interest rate cuts in the U.S. and a rise in U.S. crude stocks offset a boost from a potential extension to OPEC+ supply curbs. [O/R]
Materials stocks are poised to extend their losses as gold prices edged down on a stronger dollar, while more bad news from China’s property sector weighed on copper prices. [GOL/] [MET/L]
Investors continue to parse quarterly earnings from big banks in Canada as Royal Bank of Canada reported a lower first-quarter profit on Wednesday, hurt by bigger provisions for loans.
However, the National Bank of Canada reported a higher first-quarter profit as robust performance at its financial markets unit cushioned the hit from an increase in loan loss provisions.
On the data front, a monthly reading of personal consumption expenditures (PCE) price index in the U.S., the Federal Reserve’s preferred inflation gauge, is due on Thursday, alongside a gross domestic product (GDP) reading in Canada.
The data follows a hot reading of consumer prices (CPI) in the U.S. that had dashed early rate cut hopes from the Fed earlier this month, while a significant drop in Canadian CPI had brought forward bets for a cut by the Bank of Canada.
COMMODITIES AT 6:52 a.m. ET
Gold futures: $2,036.4; -0.4% [GOL/]
US crude: $78.1; -1.0% [O/R]
Brent crude: $82.95; -0.8% [O/R]
(Reporting by Purvi Agarwal in Bengaluru; Editing by Vijay Kishore)
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