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Futures tied to Canada’s main stock index fell on Tuesday as metal prices eased following their recent rally, while upcoming U.S. economic data kept market sentiment cautious. September futures for the S&P/TSX index were down 0.36% at 6:37 a.m. ET (1037 GMT). This decline in futures comes amid a broader concern that the rally in metal prices, particularly for gold and copper, may be losing steam as profit-taking becomes more pronounced among investors.
The energy sector also attracted attention as oil prices retreated after five consecutive sessions of gains. This shift was influenced by OPEC’s revised forecast for 2024, which lowered the oil demand growth projection due to weaker demand from China. The adjustment in OPEC’s forecast reflects ongoing challenges in the global energy market, contributing to the sector's volatility.
On Monday, the S&P/TSX Composite Index closed 0.4% higher, driven primarily by resource-linked stocks. This marked the index's third consecutive day of gains, highlighting the impact of the resource sector's performance on the overall market. Despite this recent upward trend, the focus now turns to upcoming economic indicators.
The U.S. producer price index (PPI) numbers, scheduled for release at 8:30 a.m. ET, will be closely watched. Additionally, the consumer price index (CPI) reading set for Wednesday is anticipated to provide further insights into the Federal Reserve’s potential monetary policy decisions. Recent U.S. unemployment data has heightened recessionary fears, fueling speculation about the Fed’s next move. The prevailing market expectation is for a rate cut by the Federal Reserve at its upcoming policy meeting on September 18.
In the U.S., Wall Street futures showed gains ahead of the data release, following a period of muted performance among major indexes. On the corporate front, WSP Global (TSX:WSP) announced it will acquire U.S.-based Power Engineers for $1.78 billion, marking a significant expansion move for the engineering and professional services firm.
