Futures tracking Canada’s commodity-heavy main stock index edged lower on Thursday as gold prices declined and investors assessed whether new U.S. Treasury measures would be enough to ease concerns in global bond markets.
September futures on the S&P/TSX index were down 0.4% in early trading after the benchmark index rebounded on Wednesday.
Gold fell 0.7% as investors took profits following its rise to a more than two month high after the U.S. Treasury announced expanded liquidity support for long term bonds. Silver was little changed.
Oil prices, meanwhile, climbed to three week highs amid concerns that the ongoing conflict involving Iran could continue disrupting global energy supplies. Brent crude traded around $93.81 a barrel, while U.S. West Texas Intermediate crude reached $93.77.
Investors were also awaiting Canadian producer price data for clues about the Bank of Canada’s future interest-rate decisions. Markets largely expect the central bank to keep rates unchanged at its next meeting, while pricing in a 48.4% chance of a rate hike in December.
On trade, Canada and the United States are reportedly nearing a deal that could see Washington reduce tariffs on Canadian built vehicles and key metals.
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