Futures Lower on Inflation Fears

Sun Life, Bombardier in Focus

Futures linked to Canada's main stock index fell on Monday after worries over rising inflation and China's property sector weighed on global equities, with weaker bullion also denting sentiment.

The TSX Composite gained 80.62 points Friday to end October’s first session at 20,150.87, but the index was bruised 251 points, or 1.23%, on the week.

The Canadian dollar eked up 0.08 cents to 79.26 cents U.S.

December futures eased 0.2% Monday,

Sun Life Financial said on Sunday it had agreed to buy oral healthcare company DentaQuest for $2.47 billion.

ATB Capital Markets raised the rating on Bombardier to outperform from speculative buy.

CIBC raised the target price on GFL Environmental to $53.00 from $48.00.

Cormark Securities increased the target price on Altius Renewable Royalties to $14.25 from $13.25

On the economic beat, Statistics Canada said the total value of building permits in Canada decreased 2.1% to $9.7 billion in August.
Although most provinces reported increases, notable declines in Ontario and British Columbia pulled the national results lower compared with July.

ON BAYSTREET

The TSX Venture Exchange gained back 7.01 points Friday to 865.88, for a loss on the week of 10.2 points, or 1.17%.

ON WALLSTREET

U.S. stock futures were lower on Monday as investors readied for the first full week of trading of October.

Futures for the Dow Jones Industrials gave up 107 points, or 0.3%, to 34,060.

Futures for the S&P 500 backpedaled 17 points, or 0.4%, to 4,326.75.

Futures for the NASDAQ Composite Index lost 80 points, or 0.5%, to 14,681.75.

The S&P 500 finished the month down 4.8%, breaking a seven-month winning streak. The Dow fell 4.3%, and the NASDAQ sank 5.3%, suffering their worst months of the year.

Tech shares including Nvidia and Zoom Video were slightly lower in pre-market trading as investors observed bond yields. A surge in rates to end September knocked highly valued tech stocks.

Tesla bucked the trend however, rising 2% in pre-market trading after the company said this weekend that it delivered 241,300 electric vehicles during the third quarter, well above analysts’ estimates.

Friday marked the first trading day of October and the final quarter of 2021. The major averages rose that day on promising data for Merck’s oral treatment for COVID-19, which boosted stocks tied to the economic reopening.

One of the first hurdles markets face in the new quarter is Friday’s closely watched employment report, which could spur the Federal Reserve’s decision on when to taper its bond-buying program.

Economists expect about 475,000 jobs were added in September, according to an early consensus figure from FactSet. Just 235,000 payrolls were added in August, about 500,000 less than expected.

Overseas, in Japan, the Nikkei 225 docked 1.1% Monday, while in Hong Kong, the Hang Seng dipped 2.2%.

Oil prices gained 13 cents to $76.01 U.S. a barrel.

Gold prices faded $8.40 to $1,750 U.S. a pound.