(Reuters) – Canadian stock futures inched higher on Tuesday as Wall Street peers rose with U.S. midterms elections underway, although weaker commodity prices limited gains.
Futures on the S&P/TSX index were up 0.2% by 7:37 a.m. ET. U.S. stock futures climbed amid midterm elections that will determine control of Congress and could spur moves in everything from energy companies to cannabis stocks. [.N]
Forecasts are for a Republican victory, at least in the House of Representatives, and a likely gridlock in Congress, which is considered a positive for stock markets.
The Toronto Stock Exchange’s S&P/TSX composite index closed at its highest level in seven weeks on Monday as strength in corporate earnings helped offset worries about an uncertain economic outlook.
However, limiting the upside on Tuesday, crude oil prices fell nearly 1% as worsening COVID-19 outbreaks in top crude importer China heightened fears of lower fuel demand.
Precious metal prices also fell, with spot gold dropping 0.3% against a stronger dollar. [O/R] [GOL/]
Commodity prices have a major impact on Toronto stocks, as materials and energy companies combined have a near 31% weight on the main index.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Vinay Dwivedi)
