(Reuters) – Futures for Canada’s main stock index rose on Thursday buoyed by higher crude and metal prices, while investors weighed the possibility of a more aggressive pace of tightening by the Bank of Canada.
Futures on the S&P/TSX index were up 0.2% at 7:25 a.m. ET. as their U.S. counterparts also edged up.
Oil and metal prices were boosted by reports of China, the world’s biggest crude importer, potentially easing its COVID-19 restrictions. Oil is one of Canada’s major exports.
The Toronto Stock Exchange’s S&P/TSX composite index snapped a two-day rally on Wednesday, largely driven by earnings optimism as data showed inflation in Canada edged lower in September but still surpassed forecasts and was well above the Bank of Canada’s target.
That spurred expectations that the bank would hike interest rates by 75 basis points instead of 50 basis points at its policy meeting next week, even as recession worries intensify.
The domestic data and worrying inflation reports from other parts of the world have doused hopes of price pressures peaking, and fueled concerns about a more hawkish approach from central banks.
(Reporting by Amruta Khandekar in Bengaluru; Editing by Shailesh Kuber)
