TSX sees downbeat start to the week as commodity prices trend lower

By Thomson Reuters Feb 26, 2024 | 6:26 AM

(Reuters) – Futures for Canada’s main stock index inched lower on Monday, tracking a decline in commodity prices, while investors awaited economic data expected this week to adjust their rate cut expectations from U.S. and Canadian central banks.

March futures on the S&P/TSX index were down 0.1% at 6:59 a.m. ET (11:59 GMT).

The energy sector could pare its gains from the last week, as oil prices lost on market views that higher inflation could delay cuts to interest rates, which have capped growth in global fuel demand. [O/R]

Materials-linked shares were set to reverse their upward march as copper prices lost ground weighed on by a firmer dollar, while gold prices slipped on paring market expectations of an early interest rate cut. [GOL/] [MT/L]

A January reading of personal consumption expenditures price index (PCE) in the United States and gross domestic product (GDP) data in Canada is due later in the week.

Investors will monitor these datasets for more insights into inflation in the economies and for any clues that could influence the Federal Reserve and Bank of Canada’s policies on interest rate cuts in the year.

Among corporate earnings, all eyes will be on the big banks, including Bank of Montreal, Toronto-Dominion Bank and Royal Bank of Canada that will report their quarterly numbers this week.

The Toronto Stock Exchange’s S&P/TSX composite index ended 0.45% up on Friday, bolstered by gains in material and tech stocks. [.TO]

The index hit its highest level since April 2022 and posted a weekly gain after a tech-fuelled rally on Thursday.

In other corporate news, air cargo service provider Cargojet reported its fourth-quarter revenue below analysts’ estimates.

Carrier Air Canada said on Friday that it will cap fares and add more than 6,000 seats in some markets operated by Lynx Air in light of the imminent suspension of operations by the troubled Canadian budget airline.


Gold futures: $2,030.6; -0.4% [GOL/]

US crude: $76.3; -0.3% [O/R]

Brent crude: $81.36; -0.3% [O/R]

(Reporting by Purvi Agarwal in Bengaluru; Editing by Shweta Agarwal)