Futures for Canada’s main stock index were muted on Wednesday, taking cues from global stocks, as investors cautiously waited for the U.S. Federal Reserve’s cues on the path of future interest rate hikes.
The TSX tumbled 80.74 points to close Tuesday at 18,874.01
The Canadian dollar eked up 0.06 cents at 80.20 cents U.S.
March futures were off 0.1% Wednesday.
North of the border, the Bank of Canada is likely to reduce its bond purchases as soon as next month, strategists say, which would provide the clearest signal yet that Canada’s economy requires less help to emerge from the coronavirus crisis.
Canaccord Genuity raised the price target on Airboss of America to $51.00 from $29.00
Canaccord Genuity cut the rating on Battle North Gold to sell from speculative buy.
Canaccord Genuity start coverage on Waterloo Brewing with buy rating and a price target of $8.50
On the economic slate, Statistics Canada reported February’s consumer price index was up 1.1% on a year-over-year basis in February, up from a 1.0% increase in January. On a seasonally-adjusted monthly basis, the CPI rose 0.1% in February.
ON BAYSTREET
The TSX Venture Exchange dumped 18.46 points, or 1.9%, Tuesday to 977.87.
ON WALLSTREET
U.S. stock futures fell Wednesday as investors await the outcome from the Federal Reserve’s two-day policy meeting and comments from Chair Jerome Powell later in the day.
Futures for the Dow Jones Industrials squeezed up three points to 32,727.
Futures for the S&P inched sank 16.25 points, or 0.4%, to 3,936.25.
The NASDAQ Composite index tumbled 161.5 points, or 1.2%, to 12,979.75.
Apple, Alphabet, Facebook and Netflix all slid at least 1% in pre-market trading. Tesla shed 4% in early trading. Dow Jones Industrial Average futures were flat.
Royal Caribbean and Carnival cruise lines gained about 1% apiece in early pre-market trading Wednesday. Shares of McDonald’s rose 1% after Deutsche Bank upgraded the stock to buy from hold.
The 10-year Treasury yield rose to a fresh 13-month high in early trading. The yield climbed five basis points above 1.67%, the highest since early February 2020 and exceeding its recent high on Friday of 1.642%.
On Wednesday, the Fed will release new economic and interest rate forecasts, which could indicate Fed officials expect to raise rates by, or even before, 2023. The central bank is expected to acknowledge stronger growth, which should put the Fed’s easy policies in the spotlight, especially given the new $1.9-trillion in federal stimulus spending.
Overseas, In Japan, the Nikkei 225 dipped more than six points Wednesday while in Hong Kong, the Hang Seng grasped more than six points.
Oil prices docked 58 cents to $64.22 U.S. a barrel.
Gold prices lost $4.20 to $1,726.70 U.S.