Futures for stocks in Canada’s largest market fell on Tuesday as prospects of aggressive tightening by central banks to tame inflation stoked concerns of a global economic slowdown, while a rally in crude prices limited the fall.
The S&P/TSX leaped 170.82 points to conclude Monday at 20,919.40.
June futures sagged 0.5% Tuesday
The Canadian dollar dished off 0.1 cents to 78.91 cents U.S.
Cenovus Energy and its partners have agreed to restart the West White Rose oilfield project offshore Newfoundland and Labrador in 2023.
As Ontario looks set to keep in office leaders promising to increase spending, its higher debt load compared to other provinces could reduce the appeal of its bonds in an environment where interest rates are rising and its housing market is starting to cool.
On the economic calendar, Statistics Canada reported Tuesday gross domestic product rose 0.7% in March, led by growth in client-facing industries.
ON BAYSTREET
The TSX Venture Exchange spiked 13.64 points, or 1.9%, Monday to 737.83.
ON WALLSTREET
S&P 500 futures fell in early Tuesday morning trade, as the momentum from a sharp rebound last week appeared to fade.
Futures for the Dow Jones Industrials docked 209 points, or 0.6%, Tuesday to 32,949.
Futures for the S&P 500 fell 22.25 points, or 0.5%, to 4,133.50.
Futures for the NASDAQ Composite index sank 15.75 points, or 0.1%, to 12,662.
U.S. markets were shuttered Monday for Memorial Day.
Traders will look through more corporate quarterly earnings during the holiday-shortened week. Salesforce, HP and Victoria’s Secret are expected to report earnings on Tuesday after the bell.
Tuesday’s moves came amid mounting concerns that rising inflation in the U.S. and around the world could slow down economic growth. In Europe, euro zone inflation hit a record high for a seventh straight month, surging 8.1% in May.
In the U.S., the core personal consumption expenditures price index — the Fed’s preferred inflation gauge — rose by 4.9% in April from a year ago.
In Japan, the Nikkei 225 backpedaled 0.3% Tuesday. In Hong Kong, the Hang Seng strengthened 1.4%.
Oil prices gained $3.67 to $118.74 U.S. a barrel.
Gold prices dropped $4.30 to $1,847 U.S. an ounce.
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