Futures tracking Canada's main stock index slipped on Wednesday on mounting recession worries, while investors awaited the Bank of Canada's interest rate decision later this morning.
The TSX Composite tumbled 252.09 points, or 1.3%, to wind up Tuesday at 19,990.17.
December futures on the S&P/TSX index skidded 0.1%.
The Canadian dollar handed over 0.22 cents to 73.44 cents U.S.
The TSX has recovered 9.7% from its October closing low on hopes that the U.S. Federal Reserve and other major central banks would temper their aggressive rate hike stance.
However, the rally has hit a roadblock in recent days, with the TSX closing lower for the past three consecutive sessions as investors reassess their rate hike expectations from the Fed after strong U.S. data highlighted economic strength.
On the economic slate, the Bank of Canada announces its rate decision around 10 a.m. EST. The BoC is expected to hike its benchmark overnight rate to
its highest level in 14 years as it seeks to tame high inflation,
ON BAYSTREET
The TSX Venture Exchange dipped 0.39 points Tuesday to 581.25
ON WALLSTREET
Stock futures slid Wednesday, with traders fretting over the possibility of a recession as the Federal Reserve could raise rates for longer than expected.
Futures for the Dow Jones Industrials dropped 160 points, or 0.5%, early Wednesday to 33,473.
Futures for the S&P 500 dwindled 27.75 points, or 1.1%, to 3,917.25.
Futures for the NASDAQ Composite faltered 124 points, or 0.2%, to 11,442.
Investors have been losing hope that the Fed will be able to engineer a so-called soft landing that successfully tamps down inflation through higher rates and also avoids a recession. Instead, concerns are swirling around the state of the economy and the likelihood of a downturn in 2023.
Investors await more economic data this week for clues on what to expect from the Fed. Mortgage loan application data showed a decline last week despite a fall in rates.
The tail end of earnings season continues with reports from Campbell Soup and GameStop.
In Japan, the Nikkei 225 declined 0.7% Wednesday, while in Hong Kong, the Hang Seng Index swooned 3.2%.
Oil prices gained 18 cents to $74.43 U.S. a barrel.
Gold prices picked up $1.90 to $1,784.30 U.S. an ounce.
