(Reuters) – Futures tied to Canada’s main stock index rose on Monday as investors awaited U.S. Federal Reserve Chair Jerome Powell’s remarks while hopes of a fresh stimulus from China lifted appetite.
December futures on the S&P/TSX index were up 0.6% at 6:20 a.m. ET (10:20 GMT).
The U.S. Fed’s oversized rate cut last week buoyed investor sentiment but concerns remain about the country’s slow economic growth and weak labor market.
Powell’s remarks at a Federal Reserve Bank of New York conference at 9:20 a.m. ET will be monitored for his views on future policy adjustments.
The central bank is widely expected to reduce rates by another half-point reduction at its November policy meeting. Odds of it stand at 61.7%.
Markets will also assess key U.S. data, including weekly jobless claims and gross domestic product (GDP) numbers at 08:30 a.m. ET to assess the country’s economic health.
Meanwhile, China on Thursday vowed to offer “necessary fiscal spending” to meet an economic growth target after its central bank’s aggressive policy easing measures earlier in the week.
The materials sector came under focus as gold prices edged higher on mounting expectations of another U.S. rate cut this year. Copper prices rose on more stimulus hopes from China. [GOL/] [MET/L]
Canada’s energy sector could come under pressure as oil prices fell over 2% on prospects of Saudi Arabia, the world’s biggest crude exporter, raising its output. [O/R]
The composite index ended lower on Wednesday due to energy stocks tracking lower oil prices, snapping the TSX’s four-day streak of gains.
In corporate news, electric and gas utility holding company Fortis announced a new $26 billion five-year capital plan and declared a 4% increase in fourth-quarter dividend.
COMMODITIES
Gold: $2,672.4; +0.6% [GOL/]
US crude: $68.73; -1.4% [O/R]
Brent crude: $72.4; -1.4% [O/R]
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($1 = 1.3468 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Leroy Leo)