(Reuters) – Futures tied to Canada’s main stock index rose on Wednesday, tracking its peers on Wall Street, as investors prepared for the U.S. Federal Reserve’s interest rate decision later in the day.
The futures on the S&P/TSX index were up 0.2% at 0647 ET (1047 GMT). Wall Street futures were also higher. [.N]
Traders expect the Fed to keep rates steady at 4.25%-4.50% and see only two further cuts later in the year.
More than the central bank’s decision, the spotlight will be on policymakers’ economic growth outlook amid U.S. President Donald Trump’s tariffs and the resulting trade war with key partners like Canada, China and Europe.
Canadian equities have lately come under pressure, reflecting a selloff globally as markets try to price in risks of recession due to the ongoing trade war.
The TSX is largely flat for the year, erasing initial gains in the run-up to Trump’s inauguration in January. On Tuesday, the benchmark index ended lower on Tuesday after a data showed a surprise jump in domestic annual inflation.
In commodities, oil prices fell on Wednesday after Russia agreed to Trump’s proposal that Moscow and Kyiv temporarily stop attacking each other’s energy infrastructure, a move that could eventually pave the way for Russian oil to enter global markets. [O/R]
Gold was trading at a record high on Wednesday as tensions in the Middle East and U.S. tariff uncertainties lifted the bullion’s safe-haven appeal. [GOL/]
In corporate news, Canadian retailer Alimentation Couche-Tard missed third-quarter revenue estimates, hurt by sluggish demand in its convenience stores and fuel businesses amid rising inflationary pressures.
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($1 = 1.4321 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Leroy Leo)
