Toronto futures edged upward on Monday supported by higher crude prices on supply concerns, while investors keenly await inflation data out later this week that could offer more insight on the Bank of Canada's (BoC) outlook for interest rates.
The TSX Composite Index gained 54.5 points to finish Friday at 20,622.34. On the week, the gain was 547 points, or 2.72%.
September futures were up 0.2% Monday.
The Canadian dollar inched up 0.1 cents to 74.05 cents U.S.
Bank of Montreal on Saturday said it is winding down its indirect retail auto finance business and shifting focus to other areas in a move that will result in an unspecified number of job losses.
On the economic schedule, Statistics Canada said its Industrial Product Price Index rose 1.3% month over month in August and fell 0.5% year over year. The agency’s Raw Materials Price Index increased 3.0% on a monthly basis in August and posted a 4.3% year-over-year decline.
Housing starts in Canada fell by 1% over a month earlier to 252,787 units in August 2023, above market expectations of 247,100 units, according to the Canada Mortgage and Housing Corporation.
ON BAYSTREET
The TSX Venture Exchange inched forward 2.7 points Friday to 590.76, for a weekly gain of 9.6 points, or 1.66%.
ON WALLSTREET
U.S. stock futures ticked down Monday morning as investors look toward the Federal Reserve’s next policy decision.
Futures for the Dow Jones Industrials sank 13 points to 34,914.
Futures for the S&P 500 lost 6.5 points, or 0.1%, at 4,491.50.
Futures for the NASDAQ hesitated 44.25 points, or 0.3%, to 15,348.
Investors are widely anticipating that the Fed will hold interest rates steady at the policy meeting this week. Traders will try get a better sense of the central bank’s stance on inflation from here.
Recent inflation data came largely in-line with economists’ expectations. While the producer price index gained more than expected, the core PPI, which excludes food and energy, matched the estimate. The core consumer price index also increased slightly higher than expected in August, rising 0.3% month-over-month, against the estimate of 0.2%.
But experts opine higher prices could be ahead as the labor market remains strong. The United Auto Workers strike could place further upward pressure on prices, according to the strategist.
Policymakers will be looking toward more economic data releases Monday. The National Association of Home Builders will be releasing September’s Housing Market Index data. The New York Fed will also be announcing September’s Business Leaders Survey results.
In Hong Kong, the Hang Seng retreated 1.4% Monday, while markets in Japan were closed for a public holiday.
Oil prices dipped 50 cents to $91.27 U.S. a barrel.
Gold prices took on $1.80 to $1,948.
