Futures tracking Canada's resources-heavy stock index inched up on Monday, as gold prices rose after a Trump administration probe into U.S. Federal Reserve Chair Jerome Powell sparked concerns over central bank independence and boosted safe-haven demand.
The TSX popped 234.29 points to close Friday at 32,612.93, for a gain on the week of 730 points, or 2.29%.
The index touched a record high on Friday, posting its biggest weekly gain since November, as commodity prices climbed and domestic employment data reassured investors that the economy was holding up.
The Canadian dollar gained 0.2 cents to 72.05 cents U.S.
March futures gained 0.2% Monday.
Investors will look for further cues from domestic housing and manufacturing data later this week, alongside developments from Prime Minister Mark Carney's visit to China.
ON BAYSTREET
The TSX Venture Exchange leaped 13.4 points, or 1.3%, Friday to 1,052.18. The index gained more than 59 points, or 5.97%, on the week.
ON WALLSTREET
Stock futures fell Monday after the Department of Justice opened a criminal investigation into Federal Reserve Chair Jerome Powell, an apparent escalation by President Donald Trump in his attempt to pressure the central bank.
Futures for the Dow Jones Industrials dumped 375 points, or 0.8%, to 49,351.
Futures for the S&P 500 index fell 44.75
points, or 0.6%, at 6,960.25.
Futures for the NASDAQ lost 223.50 points, or 0.9%, to 25,714.75.
Trump’s call to cap credit card rates for one year at 10% was also causing some market indigestion to start the week. Critics fear Trump’s plan to aid affordability would backfire and restrict lending, hurting consumers — along with bank profitability.
Bank stocks led the losses in early trading with Citigroup down 4% in the premarket. JPMorgan and Bank of America were off by more than 2%. Capital One shares plunged 11% in early trading.
Powell confirmed in an unusual direct video statement Sunday evening that federal prosecutors have opened a criminal investigation related to his Senate Banking Committee testimony on the renovation of Fed office buildings.
Powell said the investigation was another attempt by Trump to influence the central bank’s monetary policy and he would not bow to the pressure. His term as chair is up in May.
In Hong Kong, the Hang Seng gained 1.4%. Markets in Japan were closed for holiday Monday.
Oil prices ditched 55 cents to $58.56 U.S. a barrel.
Gold prices went skyward $92.10 at $4,593 U.S. per ounce.
