Futures for Canada's main stock index were down on Monday, as investors remained cautious on the prospects of faster rate hikes by central banks to curb rising prices, with the benchmark index set for its worst month since
September.
The S&P/TSX Composite rumbled 197.64 points, or 1%, to end Friday at 20,741.75, for a gain on the week of 120 points, or 0.6%.
The Canadian dollar took on 0.26 cents to 78.39 cents U.S.
March futures slid 0.4% Monday.
CIBC cut the target price on Converge Technology Solutions to $11.00 from $12.50
CIBC cut the target price on Softchoice to $31.00 from $37.50
RBC cuts target price on Teck Resources to $52.00 from $53.00
On the economic front, Statistics Canada’s industrial product price index rose 0.7% on a monthly basis in December and was 16.1% higher than in December 2020, while its raw materials price index fell 2.9% on a monthly basis in December, but posted a 29.0% year-over-year increase.
Canada will temporarily withdraw non-essential Canadian employees and remaining dependents from its embassy in Ukraine, the foreign ministry said on Sunday, amid an international standoff over Russian troops massed on the country's borders.
ON BAYSTREET
The TSX Venture Exchange regained 8.11 points, or nearly 1%, to 838.33, short of last Friday’s close by 18.3 points, or 2.1%.
ON WALLSTREET
Stock futures were mixed in early morning trading Monday as investors braced for the final trading day in what could be the worst month for the S&P 500 since March 2020.
Futures for the Dow Jones Industrials swooned 192 points, or 0.6%, to 33,399. The Dow, off by 4.4% this month, is heading for its worst month since October 2020
Futures for the S&P 500 gave back 17.25 points, or 0.4%, to 4,406. The 500-stock average is nearing correction territory, down more than 8% from its intraday high earlier this month. The S&P 500 is down 7% in January.
Futures for the NASDAQ gained 4.75 points to 14,437.75.
The NASDAQ which is roughly 15% off its November record close, is headed for its worst month since October 2008 and the worst first month of the year of all time. The technology-focused average is down nearly 12% in January.
January has turned out to be a dismal month for stocks. The S&P 500 is headed for its worst month since the pandemic-spurred market turmoil in March 2020 as investors worry about inflation, supply chain issues and the upcoming rate hikes from the Federal Reserve.
Investors have a big week for economic data and some important earnings reports from some of the market’s biggest tech names, including Alphabet, Starbucks, Meta Platforms, Amazon and more. About one-third of S&P 500 companies have reported fourth-quarter earnings and 77% have beaten Wall Street’s earnings expectations.
Last week, the Fed indicated that it is likely to raise interest rates for the first time in more than three years in order to combat historically high inflation. Markets are now pricing in five quarter-percentage-point interest rate hikes in 2022.
Overseas, in Japan, the Nikkei 225 gained 1.1% Monday, while markets in Hong Kong were closed.
Oil prices gained 42 cents to $87.24 U.S. a barrel.
Gold prices jumped $3.90 to $1,790.50 U.S. an ounce.
