(Reuters) – Futures tied to Canada’s main stock index fell slightly on Monday as investors slashed bets for a larger U.S. interest rate cut in November, while keeping focus on the crucial domestic and the U.S. economic data later this week.
December futures on the S&P/TSX index were down 0.1% at 6:03 a.m. ET (10:03 GMT).
The TSX composite index scaled a record high on Friday after strong U.S. jobs data allayed concerns about a slowdown in the world’s largest economy, and with it tempered hopes of another bumper rate cut by the Federal Reserve next month.
Money markets currently see a 88% chance for a 25-basis-point rate cut by the Fed in November, with another similar-sized cut expected in December.
All eyes this week will be on the U.S. Consumer Price Index (CPI) figures on Thursday that is expected to show headline inflation moderated in September to 0.1% on a monthly basis from 0.2% a month ago.
Canada’s unemployment data on Friday will be another important catalyst for investors to gauge Canadian central bank’s interest-rate path. The Bank of Canada is widely expected to deliver a fourth cut at the meeting later in the month.
The week also marks the beginning of earnings season on Wall Street, with major banks including JP Morgan Chase, Wells Fargo and BlackRock expected to report their quarterly results on Friday.
Among sectors, Canada’s energy stocks could extend their rally after oil prices jumped on worries over wider Middle East conflict disrupting exports in the region. [O/R]
In corporate news, Chevron would sell its non-operated interest in the Athabasca Oil Sands project and its operated interest in Duvernay shale to Canadian Natural Resources for $6.5 billion.
COMMODITIES
Gold: $2,657.4; +0.2% [GOL/]
US crude: $75.98; +2.2% [O/R]
Brent crude: $79.53; +1.9% [O/R]
($1 = 1.3592 Canadian dollars)
(Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo)