(Reuters) – Futures linked to Canada’s main stock index fell on Monday as crude prices slipped, while investors exercised caution ahead of key U.S. inflation data due later this week.
September futures on the S&P/TSX index were down 0.3% at 6:00 a.m. ET (10:00 GMT).
The energy sector came under pressure as oil prices edged lower, hurt by weak Chinese demand and global oversupply risks.
Materials shares were in focus with gold prices rising due to investor caution ahead of key U.S. inflation data. Meanwhile, copper slid on demand worries fanned by weak data from China. [GOL/] [MET/L]
The U.S. consumer price index (CPI) report due Wednesday is expected to provide more clues on the extent of policy reduction the Federal Reserve could implement.
Money markets widely expect a 25-basis-point U.S. rate cut in the Sept. 18 meeting, but there are slim bets for a hefty 50-bps reduction.
Although inflation in the United States has exhibited a downward trend, global markets have experienced jitters over the economic slowdown in the country with higher interest rates.
Meanwhile, the first U.S. presidential debate between Democrat Kamala Harris and Republican Donald Trump at 9:00 p.m. ET will make global headlines, as the political rivals face each other in a tight race to win the White House.
Back home, the TSX composite index ended over 1% higher on Monday as investors took advantage of lower stock prices.
In corporate news, Fission Uranium’s shareholders voted in favor of Paladin Energy’s proposed acquisition of the Canadian resource company, the Australian miner said.
COMMODITIES
Gold: $2,510.10; +0.03% [GOL/]
US crude: $67.88; -1.2% [O/R]
Brent crude: $71.04; -1.1% [O/R]
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($1 = 1.3564 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Shreya Biswas)