Futures for Canada's main stock index slipped on Tuesday, tracking the weakness in global markets, as investors exercised caution ahead of Federal Reserve Chair Jerome Powell's speech following hawkish comments overnight by Fed policymakers.
The TSX gained 42.56 points to end Monday at 19,857.07.
Futures on the S&P/TSX index eased 0.3% Tuesday morning.
The Canadian dollar dropped 0.18 cents to 74.48 cents U.S.
On Monday, two Fed officials said they expected the terminal Fed Funds rate – now at 4.25% to 4.5% – to need to rise to a 5% to 5.25% range to tackle inflation. Both policymakers said fresh inflation data on Thursday will help them decide whether the Fed can slow the pace of interest rate hikes at their upcoming meeting.
TC Energy said it was too early to speculate the cost of cleaning up a spill from its Keystone pipeline, as the Canadian company entered into a deal with the U.S. Environmental Protection Agency.
First Quantum Minerals said it was in talks with the government of Panama to avoid halting operations at its mine over a contract dispute.
ON BAYSTREET
The TSX Venture Exchange improved 4.79 points Monday to 568.68.
ON WALLSTREET
Stock futures were down Tuesday as concern over higher rates lingered among traders awaiting comments from a closely followed Federal Reserve leader.
Futures for the Dow Jones Industrials declined 156 points, or 0.5%, early Tuesday to 33,514.
Futures for the S&P 500 faltered 18.25 points, or 0.5%, to 3,895.50.
Futures for the NASDAQ Composite slipped 70.5 points, or 0.6%, to 11,115.
Atlanta Fed President Raphael Bostic said Monday that interest rates should rise above 5% and stay there for a “long time.” Meanwhile, San Francisco Fed President Mary Daly said the central bank should continue raising rates, albeit at a slower pace. Treasury yields rose slightly on Tuesday.
Those comments came ahead of a speech by Fed Chair Jerome Powell slated for 9 a.m. ET Tuesday. Investors will parse his comments for tea leaves into how the Fed will respond next in its attempt to cool inflation.
Investors came into the new year worried that higher Fed rates could tip the economy into a recession. However, many appear to be mounting bets that inflation is starting to ease.
In Japan, the Nikkei 225 returned from holiday to gain 0.8%, while in Hong Kong, the Hang Seng Index dipped 0.3%.
Oil prices forged ahead 35 cents to $74.98 U.S. a barrel.
Gold prices sank $1.50 to $1,876.30 U.S. an ounce.
