TSX futures edge lower after US Fed hints more rate hikes
Timilehin Adejumobi
1 min read
Futures for Canada’s main stock index inched lower on Thursday, on Federal Reserve’s hawkish stance on further policy tightening after skipping a interest rate hike in June, while lower metal prices added to the gloom.
Futures on the S&P/TSX index were down 0.2% at 7:51 a.m. ET.
Investors will also closely monitor domestic housing starts data, which is expected to show that Canada had less new residential buildings in May compared with the previous month. The report is due at 8:15 a.m. ET.
The U.S. central bank left interest rates unchanged on Wednesday but signaled more interest rate hikes this year that could go up to a half a percentage point raise.
Traders see a 72% chance of a 25-basis-point hike in July, up from around 60% odds a day earlier, according to the CME Fedwatch tool.
Meanwhile, Bank of Canada is expected to raise interest rate again in July to 5.00% after a surprise 25-bps increase last week.
This report’s information was first seen on REUTERS; to read more, click this link.
