Futures tracking Canada's blue-chip stocks edged higher on Monday, supported by stronger gold prices, while inflation concerns were tempered by oil retreating from six-month highs on hopes of easing US-Iran tensions.
The TSX retreated 185.27 points to conclude Friday 35,788.18. On the week, the pasting was 388 points, or 1.07%.
The Canadian dollar was flat at 71.36 cents U.S.
December futures flew 0.5% Monday morning.
Canada's benchmark index declined last week amid volatility ?in global equity markets, with a selloff in AI-linked stocks further weighing on investor sentiment ahead of rate decisions from the Fed and the ?Bank of Canada
Traders expect the Fed to keep rates on hold ?at its policy meeting next week, with a quarter-point hike priced in for December.
In Canada, the BoC ?is expected to raise its benchmark interest rate by ?25 basis points to 2.5% on Wednesday and deliver one more hike by the end of March, according to a Reuters poll of economists
Investors were also monitoring trade developments after U.S. President Donald Trump said on Sunday that he expected a trade dispute with Canada to be resolved "soon"
On the political front, the opposition Conservative Party won an election ?in British Columbia for the first time in nearly 100 years, provisional results showed on Sunday
ON BAYSTREET
The TSX Venture Exchange fell 1.01 points Friday to 820.95. The index surrendered 24.35 points, on the week, or 2.9%.
ON WALLSTREET
Stock futures rose slightly on Monday, boosted by falling oil prices, following a losing week for the S&P 500 and NASDAQ Composite as cracks emerge around the artificial intelligence trade.
Futures for the Dow Jones Industrials sprang 184 points, or 0.6%, early Monday to 52,761.
Futures for the S&P 500 picked up four points, or 0.1%, to 7,663.75
Futures for the NASDAQ Composite was unchanged at 29,117.75.
Higher oil prices and a broadening selloff that hit many market sectors dragged the three major averages to losses on Friday. The selloff also dragged the S&P 500 and the NASDAQ to back-to-back weekly losses.
Neocloud stocks pressured the market last week as well, as investors worried companies may be borrowing too much cash to expand their AI capabilities. Neocloud names fell again on Monday after Elon Musk said more than 200 companies in the space face “guppy-level death.”
Shares of several neocloud companies were lower in premarket trade, with Nebius, CoreWeave and Iren all down more than 4%, after Elon Musk said that more than 200 companies in the sector could collapse.
Traders are awaiting the Federal Reserve’s decision on Wednesday. Fed funds futures trading suggests a 90% likelihood that policy makers will hold interest rates at the current target range of 3.75% to 4%.
Bank of America expects the Federal Reserve will raise rates by a quarter percentage point, noting it would be a “heavy lift” move.
In Japan, the Nikkei 225 dipped 0.8% Monday, while in Hong Kong, the Hang Seng moved ahead 0.4%.
Oil prices dropped $2.27 to $101.00 U.S. a barrel.
Gold prices brightened $16.80 to $4,024.7.60 U.S an ounce.
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