(Reuters) – Futures tracking Canada’s resources-heavy main stock index dipped on Monday as commodity prices fell, while investors await the Federal Reserve’s policy meeting later in the week.
Oil fell by more than $1 a barrel on Monday following weaker-than-expected factory activity data out of China and on concerns that its widening COVID-19 curbs will curtail demand. Oil is one of Canada’s major exports. [O/R]
Prices of base metals dropped on weaker manufacturing data and rising COVID cases in China, while gold fell due to a stronger dollar and elevated U.S. bond yields. [GOL/] [MET/L]
Futures for the S&P/TSX index edged 0.3% lower at 06:40 a.m. ET, while their U.S. counterparts fell as investors awaited another jumbo-sized interest rate hike by the Fed. [.N]
The U.S. central bank is widely expected to deliver a 75-basis-point hike on the heels of a smaller-than-expected 50 bps hike by the Bank of Canada last week.
Investors also await Capital Power Corp’s third-quarter results.
The National Bank of Canada and Canadian Imperial Bank of Commerce (CIBC) have dropped out as bidders for HSBC Holdings PLC’s business in Canada, while Bank of Montreal is still pursuing it, according to a report in the Globe and Mail newspaper.
The Toronto Stock Exchange’s S&P/TSX composite index extended its rally to a sixth straight day and closed at its highest in six weeks on Friday. [.TO]
($1 = 1.3639 Canadian dollars)
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Vinay Dwivedi)
