TSX futures slip on caution ahead of BoC rate decision

Futures for Canada’s resources-heavy main stock index edged lower on Wednesday as investors steered clear of big bets ahead of a central bank decision later in the day, but drew comfort from higher commodity prices.

Futures on the S&P/TSX index were down 0.1% at 6:58 a.m. ET (1058 GMT).

While the Bank of Canada (BoC) is widely expected to hold its key interest rate at 4.5% for the rest of the year, some economists say still-high inflation and a resilient labor market may prompt at least one more rate hike.

The policy decision is due at 10 a.m. ET.

Investors are also on the lookout for inflation data out of the U.S. and the Federal Reserve’s policy meeting next week, with the U.S. stock index futures subdued in early trade.

Copper prices hit their highest level in nearly four weeks on hopes that China would inject more stimulus into its economy, boosting metals demand, while oil prices firmed on Saudi Arabia’s surprise weekend pledge to deepen output cuts.

This report’s information was first seen on REUTERS; to read more, click this link.