TSX futures shed as commodity prices slip on risk off mood

Futures tracking Canada’s main stock index receded on Thursday, after commodity prices slipped as rating agency Fitch’s downgrade of the United States’ top credit rating weighed on risk appetite for a second day.

September futures on the S&P/TSX index were down 0.7% at 6:54 a.m. ET (1054 GMT).

Crude prices slid as the downgrade of U.S. government credit weighed on sentiment, while copper prices eased on a dim demand outlook from top metals consumer China after feeble economic data.

Gold steadied after data showing a deterioration in euro zone business activity triggered some safe-haven inflows, but held near three-week lows on a stronger dollar and higher bond yields.

Fitch’s downgrade of the U.S. credit rating is likely to exacerbate unease about the country’s debt position, political polarization and the global standing of the U.S. dollar, investors and analysts said.

Amid the Fitch downgrade turmoil, traders will keenly watch data on initial jobless claims for the week ended July 29, due at 8:30 a.m. ET, to determine the resilience of the U.S. labor market.

Data on Canada’s total reserves is also due later in the day.

The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) fell to a two-week low on Wednesday.

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