TSX Futures Steady with CPI Reading
Futures tied to Canada's main stock index held steady on Tuesday, as investors awaited inflation data that could shape expectations for a potential rate cut by the country's central bank.
The TSX Composite Index squeezed out a gain of 17.36 points to finish Monday at 27,922.85.
Futures nibbled ahead 0.1% Tuesday.
The Canadian dollar moved lower 0.04 cents to 72.41 cents U.S.
In macroeconomic news, July’s consumer price index rose 1.7% year over year, down from a 1.9% increase in June. On a seasonally adjusted monthly basis, the CPI rose 0.1% in July.
Economists polled by Reuters expected CPI to show a moderation in the annual inflation rate to 1.8% last month from 1.9% in June.
ON BAYSTREET
The TSX Venture Exchange scaled back 1.69 points by the close Monday to 789.08.
ON WALLSTREET
Stock futures ticked lower Tuesday as new earnings from major retailers began to roll in, while traders looked ahead to a key speech from Federal Reserve Chair Jerome Powell later in the week.
Futures for the Dow Jones Industrials let go of one point to 44,895.
Futures for the S&P 500 retreated 6.75 points, or 0.1%, to 6,462.50
Futures for the NASDAQ sank 34 points, or 0.1%, to 23,763.75.
Home Depot shares edged lower after the home improvement giant reported weaker-than-expected second-quarter earnings but maintained its full-year outlook. Lowe’s, Walmart and Target are on deck for later this week.
Investors have awaited these reports as they search for clues on how the consumer is faring amid a mixed inflation outlook and evolving U.S. trade policy.
Wall Street is also awaiting clues from Fed Chair Jerome Powell as to what will happen at the central bank’s remaining policy meetings this year. Central bank officials from around the globe will convene this week in Jackson Hole, Wyo. for the Fed’s annual economic symposium.
The fed funds futures market is indicating an 83% chance for a quarter-point rate cut at the Fed’s next policy meeting in September.
In Japan, the Nikkei 225 fell back 0.4% Tuesday, while in Hong Kong, the Hang Seng dipped 0.2%.
Oil prices fell 78 cents to $62.64 U.S. a barrel.
Gold prices picked up $8.50 at $3,386.50 U.S. per ounce.
