(Reuters) – Futures for Canada’s main stock index edged up on low volumes on Tuesday, helped by higher commodity prices, while investors weighed the impact of a potential shift in political power after Prime Minister Justin Trudeau announced his plan to resign.
March futures on the S&P/TSX index were up 0.21% as of 6:40 a.m. ET (1140 GMT).
Trudeau said on Monday he would step down in the coming months after nine years in power, bowing to pressure from lawmakers alarmed by his Liberal Party’s miserable showing in pre-election polls.
The Toronto Stock Exchange’s S&P/TSX composite index fell following the announcement, ending a three-day gaining streak.
Oil prices climbed in the day, as fears of tighter Russian and Iranian supply due to escalating Western sanctions lent support. [O/R]
Gold prices also edged higher, helped by a weaker U.S. dollar. [GOL/]
On Tuesday, investors will be focused on the December Ivey Purchasing Managers Index (PMI) data — a vital barometer of the Canadian economy’s health — scheduled for release at 10:00 a.m. ET.
Friday’s employment data may also offer clues on the Bank of Canada’s interest rate cut trajectory.
Across the border, the key U.S. nonfarm payrolls figures are also due later in the week and any signs of resilience in the economy are likely to push back expectations on the pace of the Federal Reserve’s monetary easing cycle this year.
In corporate news, Canadian waste management company GFL Environmental said it would sell its environmental services division to Apollo Global Management and BC Partners in a deal valued at C$8 billion ($5.59 billion).
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($1 = 1.4311 Canadian dollars)
(Reporting by Ragini Mathur in Bengaluru; Editing by Sahal Muhammed)