TSX futures gain on higher commodity prices

Futures tracking Canada’s resources-heavy main stock index rose on Thursday, as commodity prices advanced after cooling U.S. inflation fueled bets that the Federal Reserve’s interest rate hikes are nearing an end.

September futures on the S&P/TSX index were up 0.2% at 6:50 a.m. ET (1050 GMT), mirroring gains in their U.S. counterparts.

Oil prices were on the rise, while the prices of most metals advanced on a softer dollar, but weak export data in top metals consumer China put a dampener on the gains.

The dollar continued to lose steam after U.S. consumer prices data on Wednesday showed slowing inflation in the world’s largest economy, spurring hopes that the Fed’s aggressive rate hike saga is near its peak.

The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) recorded its best single-day performance in two weeks on Wednesday, despite the Bank of Canada (BoC) raising its lending rate by an expected 25-basis-points.

After the decision, Governor Tiff Macklem said the central bank is prepared to increase rates further to bring inflation down to its 2% target.

J.P.Morgan and Goldman Sachs now expect the BoC to deliver one last 25-basis-point rate hike in October and lifted their terminal rate forecast to 5.25%.

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