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Futures for Canada’s main stock index are expected to inch higher today as metal prices continue to rise. Investors are eagerly awaiting the release of US producer prices data and corporate earnings in Canada. The March futures on the S&P/TSX index were up 0.1% at 7:09 a.m. ET (1209 GMT).
The upcoming release of the January reading of the producer price index (PPI) in the United States at 8:30 a.m. ET will provide further insight into the country’s economy. This data follows a hotter-than-expected consumer price index reading for January earlier in the week, which dashed hopes of an early rate cut by the Federal Reserve and led to steep losses in benchmark indexes both in the US and Canada.
While energy shares may experience a slight decline due to slipping oil prices caused by a slowing demand forecast by the International Energy Agency, the energy sector is set to outperform its sectoral peers this week following a rally on Thursday.
On the other hand, material-linked shares are expected to see another day of gains, especially after copper prices rose to a one-week high, igniting hopes for a June rate cut by the Fed. Gold prices, however, remained steady on Friday.
The Toronto Stock Exchange’s S&P/TSX composite index closed 1.6% higher on Thursday, marking its biggest gain in two months, thanks to gains in resource-linked shares.
In corporate news, Air Canada, the country’s largest carrier, reported a smaller adjusted loss on Friday. The airline benefited from the resilience of international travel demand amid challenging conditions in the industry. Additionally, Fairfax Financial Holdings surpassed expectations for fourth-quarter profit, driven by higher gains from investments.
Investors will continue to monitor metal prices, US producer prices data, and corporate earnings in Canada as they make decisions and navigate the stock market.
