(Reuters) – Futures linked to Canada’s main stock index tumbled on Thursday, pulled down by declines in oil and metal prices, while investors assessed the possibility of more rate cuts by the Bank of Canada after easing its policy for the second time this year on Wednesday.
The S&P/TSX 60 futures were down 0.69% as of 07:00 a.m. ET (1100 GMT).
Despite the market support offered by the rate cut, the Canadian benchmark index fell to a near two-week low on Wednesday due to declines in technology shares that mirrored tech megacaps selloff on Wall Street.
The Canadian central bank trimmed its key policy rate by 25 basis points, in line with market expectations, and indicated a possibility of more cuts if inflation continues to ease in line with forecasts.
Traders currently see a 62.2% chance of a cut in September.
Gold prices fell, poised to weigh on the materials sector, as investors rushed to book profits ahead of U.S. economic data that can offer clarity on the Federal Reserve’s monetary policy outlook. [GOL/]
Copper registered its ninth straight session of decline and the lowest level since April 3 due to grim demand outlook from China. [Met/L]
The energy sector was set to lose ground as oil prices fell on mixed demand signals, while fuel consumption in China remains weak. [O/R]
Across the border, investors will focus on durable goods, jobless claims and second-quarter GDP data, expected at 8:30 a.m. ET, to gauge the economic health in the United States.
In corporate news, bitcoin miner Bitfarms said it has adopted a second ‘poison pill’ after a Canadian tribunal ceased the earlier one adopted to prevent a potential hostile takeover attempt by rival Riot Platforms.
COMMODITIES
Gold: $2381.19; -0.68% [GOL/]
US crude: $76.40; -1.5% [O/R]
Brent crude: $80.49; -1.5% [O/R]
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($1 = 1.3834 Canadian dollars)
(Reporting by Nikhil Sharma in Bengaluru; Editing by Shailesh Kuber)
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