Futures linked to Canada's main stock index were subdued on Thursday, after the index pulled back from recent record highs and investors took a breather as the end of the quarter approached.
The TSX Composite Index dwindled 58.68 points by Wednesday’s close to 29,756.95.
However, the benchmark index was still on track for a 10.8% gain for the third quarter, which would be its fifth straight quarterly advance.
The Canadian dollar edged higher 0.01 cents to 71.97 cents U.S.
Futures were flat Thursday.
Meanwhile, Canada planned to create duty-free access for up to 95% of its exports to Indonesia over the next eight to 12 months, the International Trade Minister said, as Canada attempts to diversify its trading partners.
In corporate news, Lithium Americas' U.S.-listed shares rose 24% premarket, having jumped more than 90% in the previous session, after Reuters reported that the Trump administration was seeking up to a 10% stake in the company.
Air Canada said it expected a hit of $375 million to its operating income from labour disruptions, after its flight attendants went on a four-day strike in August.
In commodities, gold rose on safe-haven demand, while copper hit a fresh 15-month high amid supply fears. Oil prices edged lower.
On the economic front, Statistics Canada said the number of employees receiving pay and benefits from their employer—measured as "payroll employment" in the Survey of Employment, Payrolls and Hours—increased by 21,600 (+0.1%) in July, following a decline of 9,100 (-0.1%) in June.
ON BAYSTREET
The TSX Venture Exchange edged up 2.27 points Wednesday to 915.12.
ON WALLSTREET
S&P 500 futures fell on Thursday, bogged down by a further pullback in Nvidia and Oracle, as investors awaited upcoming unemployment data.
Futures for the Dow Jones Industrials dropped 87 points, or 0.2%, to 46,354.
Futures for the much broader index dipped 28.5 points, or 0.4%, at 6,663.75
Futures for the NASDAQ sank 159.25 points, or 0.6%, to 24,580.
Nvidia and Oracle saw more losses in the premarket, respectively sliding almost 1% and around 2%. The two fell for a third straight day on Wednesday as questions over the state of the artificial intelligence trade lingered.
The recent market action appears to be reflecting concerns about record-high valuations and potentially risky circular relationships in the AI industry after some recent deals.
Declines in those names, along with Micron Technology, led the major averages to close lower for a second day in a row on Wednesday.
Thursday’s release of weekly jobless claims data will provide a key economic data point that could influence the Federal Reserve’s monetary policy moves amid increasing concerns about a weakening labor market and rising layoffs. Initial unemployment claims last week eased after a brief spike the week prior.
Fed Chair Jerome Powell said on Tuesday that a slowing labour market is outweighing concerns about stubborn inflation, which contributed to the Federal Open Market Committee’s recent decision to lower interest rates for the first time this year.
Powell noted “a marked slowdown” in supply and demand and said that “in this less dynamic and somewhat softer labor market, the downside risks to employment have risen.”
Investors are also cautious ahead of the personal consumption expenditures price index due Friday and are monitoring developments regarding a potential government shutdown.
If the government were to shut down, that could mean mass firings in the federal government, as the Office of Management and Budget has said in a memo that agencies should prepare “reduction in force” plans.
In Japan, the Nikkei 225 inched up 0.3%, while in Hong Kong, the Hang Seng pointed upward 0.1%.
Oil prices retreated 37 cents to $64.62 U.S. a barrel.
Gold prices advanced $2.30 to $3,770.40 U.S. per ounce.
