(Reuters) – Futures tied to Canada’s resource-heavy main stock index edged down on Wednesday tracking lower oil prices as analysts flagged concerns that China’s stimulus may not be sufficient to immediately boost domestic demand.
December futures on the S&P/TSX index were down 0.2% at 6:13 a.m. ET (10:13 GMT).
China unveiled its bumper stimulus package on Tuesday to revive its struggling economy from a deflationary slump, boosting stocks markets globally.
Canada’s composite index closed at a record high for the fourth straight session on Tuesday, benefiting from a surge in energy and mining shares.
However, analysts remained skeptical about whether it would provide an immediate boost to the Chinese economy, given weak credit demand from businesses and consumers.
Oil prices fell after Tuesday’s climb and could weigh on Canada’s heavyweight energy stocks.
The materials sector could track gold prices, which pared gains after hitting a record high earlier in the day, while copper prices declined as investors booked profits after previous session’s rally. [GOL/] [MET/l]
In the U.S., Wall Street futures slipped on Wednesday as investors awaited more clues on the health of the economy and the outlook for interest rate cuts. [.N]
With already one rate cut at hand, investors are pricing in a 59.1% chance of another 50-basis point trim at the U.S. Federal Reserve’s next policy in November.
Markets will also assess comments from Fed Chair Jerome Powell and personal consumption expenditures data – the central bank’s preferred inflation measure – scheduled later in the week.
In corporate news, Canadian investment trust Middlefield Global Real Asset Fund said its unitholders approved its merger with mutual fund Real Estate Split Corp.
COMMODITIES
Gold: $2,655.8; -0.02% [GOL/]
US crude: $71.1; -0.6% [O/R]
Brent crude: $74.73; -0.6% [O/R]
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($1 = 1.3439 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Leroy Leo)
