Futures for Canada’s main stock index inched lower on Thursday, on Federal Reserve’s hawkish stance on further policy tightening after skipping an interest rate hike in June, while lower metal prices added to the gloom.
The TSX hung onto gains of 24.69 points to greet Wednesday’s closing bell at 20,015.09.
Futures on the S&P/TSX index faded 0.2% Thursday morning.
The Canadian dollar inched higher 0.04 cents to 75.05 cents U.S.
In company news, Gibson Energy said on Wednesday it will buy South Texas Gateway oil terminal from Buckeye Partners and its partners for $1.1 billion as the Canadian energy infrastructure company looks to expand into U.S. crude oil export markets.
On the economic beat, the Canadian Real Estate Association stops by with MLS listing for May. Canada Mortgage and Housing Corporation said housing starts numbered 230,205 units in May down from 240,318 units in April.
Meantime, Statistics Canada says manufacturing sales rose 0.3% in April, mainly driven by higher sales in the motor vehicle parts as well as the petroleum and coal product industries.
ON BAYSTREET
The TSX Venture Exchange dropped 6.77 points, or 1.1%, Wednesday to 609.99.
ON WALLSTREET
U.S. stock futures dipped Thursday after the Federal Reserve skipped a rate hike at its most-recent meeting but signaled two more rate hikes may still be in store later this year.
Futures for the Dow Jones Industrials dropped 53 points, or 0.2%, to 34,231.
Futures for the S&P 500 fell 15.5 points, or 0.4%, to 4,403.
Futures for the NASDAQ Composite swooned 103 points, or 0.7%, to 15,096.25.
Fed Chair Jerome Powell said during a post-meeting press conference that the Federal Open Market Committee would use the six weeks until its next meeting to “take into account the cumulative tightening of monetary policy.”
Additional economic data releases Thursday morning will give investors and policymakers better insight on the strength of the labour market and consumer spending. Weekly jobless claims numbers and retail sales for May are set to be released tomorrow morning. Investors will also keep an eye on the Philadelphia Fed’s June manufacturing survey, as well as the Fed’s May industrial production and capacity utilization numbers.
Wall Street will be looking at a handful of corporate earnings. Kroger, Jabil and John Wiley are scheduled to announce earnings Thursday morning, with Adobe reporting after the close.
In Japan, the Nikkei 225 dropped 0.1% Thursday, while in Hong Kong, the Hang Seng index gained 2.2%.
Oil prices gained 71 cents to $68.98 U.S. a barrel.
Gold prices faltered $29.00 to $1,939.90. U.S. an ounce.