Futures tied to Canada's main stock index edged higher on Monday ahead of the U.S. Federal Reserve's monetary policy decision later in the week, with investors anticipating a steeper interest rate cut.
The TSX Composite Index roared ahead 93.51 points to close Friday at 23,568.65. On the week, the index added 787 points, or 3.46%.
September futures on the S&P/TSX index were up 0.1% Monday.
The Canadian dollar headed higher 0.24 cents to 73.67 cents U.S.
In corporate news, Air Canada on Sunday reached a tentative last-minute deal with its pilots' union over a new four-year collective agreement, ending a stand-off over pay and benefits and averting a near-term strike or lockout.
On the economic docket, motor vehicle sales rang in at 169,000 for July, compared to 166,000 in the prior-year month.
Manufacturing sales rose 1.4% in July, mainly on higher sales of petroleum and coal, and chemical products. The gains were partially offset by lower sales of wood products. Also, the Canadian Real Estate Association’s MLS listings were due for August.
ON BAYSTREET
The TSX Venture Exchange jumped 9.83 points, or 1.7%, to 580.43. On the week, the index grabbed 35 points, or 6.5%.
ON WALLSTREET
Stock futures were little changed Sunday night as investors await the Federal Reserve’s highly anticipated policy meeting, during which central bankers are expected to cut rates for the first time since 2020.
Futures for the Dow Jones Industrials advanced 90 points, or 0.2% to 41,915.
Futures for the S&P 500 dipped 3.75 points, or 0.1%, at 5,687.25.
Futures for the NASDAQ fell 75.75 points, or 0.4%, to 19,691.25.
The S&P 500 is less than 1% away from its July record and could notch a new all-time high this week. After a rough start to a historically weak September, the three major U.S. indexes ended last week’s trading session in the green, with the S&P 500 and tech-heavy NASDAQ Composite just closing their best week of 2024.
The Fed is set to meet on Tuesday and Wednesday and are widely anticipated to make their first interest rate cut since they began hiking rates in March 2022. A cut this week would be a pivotal move, as many investors hope the decision could lower borrowing costs for companies and improve overall earnings growth — boosting economic growth.
In Hong Kong, the Hang Seng gained 0.3%, while markets in Japan were shuttered for holiday.
Oil prices took on 50 cents to $69.18 U.S. a barrel.
Gold prices shed $1.70 to 2,609.
