(Reuters) – Futures for Canada’s resources-heavy stock index rose on Wednesday as commodity prices gained, while investors awaited policy decision from the country’s central bank which is expected to deliver another big rate hike.
The Bank of Canada (BoC) is seen raising interest rates by another three-quarters of a percentage point to a fresh 14-year high, as stubbornly persistent inflation outweighs worries that the rapid pace of tightening will trigger a recession.
Traders are currently pricing in a 84.3% chance of a 75 bps hike to 4.0% after inflation data last week came in hotter than forecast. The decision is due at 10:00 a.m. ET.
Futures on the S&P/TSX index inched up 0.1% at 06:59 a.m. ET, although Wall Street futures tumbled after disappointing results from technology giants Microsoft and Alphabet raised fears of slowing economic growth. [.N]
The Toronto Stock Exchange’s S&P/TSX composite index closed at its strongest level in nearly three week on Tuesday as investors welcomed signs of a peak in the dollar amid hopes that the Federal Reserve will temper its ultra-hawkish stance in its fight against inflation. [.TO]
Crude oil and precious metal prices ticked higher on Wednesday, aided by dollar weakness. [GOL/] [O/R]
In company news, FirstService Corp will report third-quarter results before markets open.
Canada on Tuesday imposed conditions on Rogers Communications’ proposed remedy to overcome competition bureau concerns about Rogers’ planned C$20 billion ($14.7 billion) purchase of rival Shaw Communications.
($1 = 1.3554 Canadian dollars)
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Vinay Dwivedi)
