(Reuters) – Futures tied to Canada’s main stock index fell slightly on Friday as investors stayed on the sidelines ahead of the country’s GDP data, and key U.S. inflation numbers that could offer clues on the Federal Reserve’s policy easing.
December futures on the S&P/TSX index were down -0.1% at 6:07 a.m. ET (10:07 GMT).
The composite index has closed at record highs thrice this week, partly due to policy easing cycle in the U.S. and recent stimulus measures from China.
Investor focus is on the U.S. personal consumption expenditures (PCE) price index for August – the Fed’s preferred measure of inflation – at 8:30 a.m. ET as it could offer clues on the U.S. monetary policy outlook.
Traders widely expect another rate cut at the Fed’s November policy meeting but remain divided on the magnitude.
Investors will also assess Canada’s gross domestic product numbers later in the day, with the economy expected to grow 1% in July.
Canada’s energy sector could track oil prices, which inched lower on Friday and were on track for a weekly fall due to prospects of increased output from Libya and the broader OPEC+ group. [O/R]
The materials sector could track gold prices, which retreated after a record-breaking rally on U.S. rate cut expectations. Copper prices also edged lower but were set for their best weekly gain in over four months following China’s stimulus. [GOL/] [MET/L]
China’s central bank on Friday cut interest rates and injected liquidity into the banking system. Investors expect more stimulus before China’s week-long holiday starting Oct. 1.
In corporate news, Canadian tech firm Blackberry beat analysts’ second-quarter revenue expectations and recorded breakeven adjusted operating income and earnings per share.
COMMODITIES
Gold: $2,663.4; -0.2% [GOL/]
US crude: $67.72; +0.1% [O/R]
Brent crude: $71.63; +0.0% [O/R]
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($1 = 1.3478 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Leroy Leo)