(Reuters) – Futures tied to Canada’s main stock index were flat on Monday, following last week’s rally, as investors awaited the Bank of Canada’s interest rate cut decision later in the week.
December futures on the S&P/TSX index were up 0.01% at 6:01 a.m. ET (10:01 GMT).
The composite index notched on Friday its third straight day of record closing highs, boosted by mining shares, and also added 1.4% for the week.
The Bank of Canada’s monetary policy decision is due on Wednesday, with expectations of a 50-basis-point rate cut, which would be the first significant reduction in 15 years outside of the pandemic era.
Traders are widely anticipating an oversized rate cut by the BoC, whose odds jumped after last week’s cooler-than-expected inflation data.
Meanwhile, global markets stepped closer to the U.S. presidential elections on Nov. 5, with higher odds for Republican candidate Donald Trump’s victory.
The November elections could influence Toronto markets, as U.S. is Canada’s biggest trading partner and the Toronto Stock Exchange often mirrors Wall Street trends.
Canada’s energy sector could benefit from higher oil prices that jumped over 1%, following a more than 7% drop last week on worries about demand in China. [O/R]
The materials sector remained in focus as gold hit a record high on U.S. election uncertainties, simmering Middle-East tensions and rate cuts by major central banks, while silver neared a 12-year peak. [GOL/]
In corporate news, Apollo Silver announced to further increase the size of its private placement to 67.5 million shares at $0.20 per share.
COMMODITIES
Gold: $2,734.63; +0.5% [GOL/]
US crude: $70.39; +1.7% [O/R]
Brent crude: $74.07; +1.4% [O/R]
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($1 = 1.3816 Canadian dollars)
(Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay Kishore)