Futures for Canada's main stock index were flat on Wednesday, as cautious investors awaited the Bank of Canada's highly anticipated policy decision due later in the day.
The TSX swooned 121.09 points to conclude Tuesday to 25,504.33.
December futures eked up 0.01% Wednesday.
The Canadian dollar shrank 0.04 cents to 70.50 cents U.S.
The central bank is expected to slash interest rates by a half percentage point, according to a majority of economists polled by Reuters, many of whom increased their bets on a larger cut on news of a sharp rise in unemployment rate.
Lower credit conditions make borrowing cheaper, potentially boosting consumer spending and business investments, and enhancing the appeal of equities.
The top bank has reduced its key policy rate by 125 basis points since June amid worries about the country's lukewarm economic growth, even as annual inflation came within its target range of 2%.
In corporate news, forest and wood products firm Canfor Corporation announced it has acquired 7% of outstanding shares of its Swedish peer VIDA AB effective today.
ON BAYSTREET
The TSX Venture Exchange slid 2.08 points Tuesday to 612.67.
ON WALLSTREET
Stock futures are near flat Wednesday as investors awaited new U.S. inflation data.
Futures for the Dow Jones Industrial average dropped 40 points, or 0.1%, to 44,295.
Futures for the S&P 500 inched up six points, or 0.1%, to 6,052.25
Futures for the NASDAQ Composite Index gained 41.5 points, or 0.2%, to 21,446.75.
Traders are awaiting November’s consumer price index reading due in the morning. Economists polled by Dow Jones are expecting the inflation gauge, which tracks a basket of goods and services, to rise 0.3% from October and 2.7% compared with a year ago. Excluding volatile food and energy prices, the so-called core CPI is slated to increase 0.3% on the month and 3.3% from 12 months earlier.
That comes ahead of the producer price index report expected later in the week. Those are two of the last major economic data releases anticipated before the Federal Reserve’s policy meeting next week. Fed funds futures are pricing in a more than 85% likelihood that the central bank lowers interest rates at that gathering
Investors will also watch for monthly federal budget data expected on Wednesday. On the corporate earnings front, they will monitor Adobe results slated for release after the bell.
In Japan, the Nikkei 225 squeaked higher 0.01% Wednesday, while in Hong Kong, the Hang Seng fell 0.8%
Oil prices jumped 73 cents to $69.32 U.S. a barrel.
Gold prices took on $7.30 to $2,725.70 U.S. an ounce.
Related Stories
