Futures for Canada’s main stock index were muted on Monday as investors braced for U.S. inflation figures later in the week for clues on how long the Federal Reserve could keep interest rates at elevated levels.
The TSX Composite gained 67.06 points to close Friday afternoon at 19,654.47, but recorded a weekly loss of 170 points, or 0.86%.
December futures were flat early Monday.
The Canadian dollar was off 0.14 cents to 72.33 cents U.S.
In corporate news, Australian pension fund AustralianSuper rejected an offer to drop its opposition to a $10.5-billion bid for Origin Energy by joining a consortium led by Canada’s Brookfield Asset Management and its partner EIG.
ON BAYSTREET
The TSX Venture Exchange skidded 4.66 points, or 1.4%, to 510.28, declining 15 points, or 2.85%, this week.
ON WALLSTREET
U.S. stock futures dipped on Monday after Moody’s Investors Service lowered its U.S. credit rating outlook to negative from stable.
Futures for the Dow Jones Industrials faltered 38 points, or 0.1%, to 34,300.
Futures for the S&P 500 lost 8.5 points, or 0.2%, at 4,422.
Futures for the NASDAQ descended 32.75 points, or 0.2%, to 15,563.50.
The major averages are coming off their second consecutive week of gains. The S&P 500 rose 1.3% the previous week, while the Dow and NASDAQ gained about 0.7% and 2.4%, respectively.
Moody’s on Friday underscored the U.S.’ “very large” fiscal deficits and partisan gridlock in Washington as contributing factors for the downgrade. The ratings agency reaffirmed America’s credit rating at AAA, the highest level. This comes three months after Fitch lowered the U.S. long-term foreign currency issuer default rating to AA+ from AAA, also citing expected fiscal deterioration, an increasing debt burden and political standoffs on fiscal and debt issues.
On the economic data front, investors will be keeping an eye on October’s monthly federal budget, as well as the Federal Reserve Bank of New York’s October consumer expectations survey. Fed Governor Lisa Cook is also scheduled to give remarks Monday morning. This all comes ahead of the monthly consumer price index data on Tuesday.
In Japan, the Nikkei 225 eked up 0.1% Monday, while in Hong Kong, the Hang Seng increased 1.3%.
Oil prices inched up 0.07 cents to $77.24 U.S. a barrel.
Gold prices gained $3.60 to $1,941.30 U.S. an ounce.