Futures for Canada’s resources-heavy main stock index fell on Thursday after the U.S. Federal Reserve signaled that its rate-hike cycle is far from over, while lower commodity prices hit shares of miners.
The TSX Composite let go of 240.7 points, or 1.2%, to close Wednesday at 19,277.01.
December futures withered 0.6% on Thursday.
The Canadian dollar fell 0.35 cents to 72.57 cents U.S.
Canadian earnings were a mixed bag, with Sun Life Financial topping quarterly profit expectations, while Nutrien cut its full-year adjusted earnings forecast.
Bombardier reported a substantially smaller quarterly adjusted loss.
The world’s second biggest gold miner, Barrick Gold Corp, reported a 30.1% drop in
On the economic slate, Statistics Canada reported Canada’s merchandise exports rose 1.3%, while imports increased 0.4% in September.
As a result, Canada’s merchandise trade surplus with the world widened from $550 million in August to $1.1 billion in September.
Elsewhere, the total value of building permits in Canada fell 17.5% in September to $10.2 billion, the largest recorded monthly decline.
This was the first time all survey components posted monthly decreases since September 2019.
ON BAYSTREET
The TSX Venture Exchange recovered 2.91 points Tuesday to 598.24.
ON WALLSTREET
Stock futures fell Thursday after the Federal Reserve delivered another interest rate hike and signaled that no pivot or rate cut is coming anytime soon.
Futures for the Dow Jones Industrials faded 175 points, or 0.5%, to 32,003.
Futures for the S&P 500 let go of 29.75 points, or 0.8%, to 3,739.
Futures for the NASDAQ Composite slid 107 points, or 1%, to 10,837.50.
Corporate earnings season continued, with Qualcomm, Roku and Fortinet all falling sharply in the premarket on disappointing quarterly results and forward guidance.
Peloton’s stock tumbled after reporting a wider-than-expected loss, while Moderna sank on a lowered COVID vaccine sales outlook.
Traders had anticipated the central bank’s 0.75-percentage-point rate increase and initially read the Fed’s statement as dovish, sending stocks higher on Wednesday after the decision was delivered. Those gains then reversed when Fed Chair Jerome Powell said it was “premature” to talk about a rate hike pause and that the terminal rate would likely be higher than previously stated.
In Japan, in Hong Kong, the Hang Seng Index lost 3.1% Thursday, while markets in Japan were closed for holiday.
Oil prices docked $1.10 to $88.90 U.S. a barrel.
Gold prices dropped $27.10 to $1,622.90 U.S. an ounce.