(Reuters) – Futures tracking Canada’s main index were steady on Thursday, after stocks took a beating in the prior session when the U.S. Federal Reserve forecast a slower pace of interest rate cuts next year.

December futures on the S&P/TSX index were flat at 06:00 a.m. ET (1100 GMT).

The U.S. central bank cut rates by 25 basis points as expected on Wednesday, but Chair Jerome Powell said more reductions in borrowing costs hinged on further progress in lowering stubbornly high inflation.

Traders dialed back expectations of how far U.S. borrowing costs are likely to fall over the coming year, pushing stocks lower and government bond yields higher.

Canada’s main stock index posted its biggest decline in 10 months on Wednesday, tracking losses in U.S. peers. The benchmark S&P 500 ended the prior session down nearly 3%, its biggest one-day drop since August, though futures pointed to a mini rebound at the open on Thursday. [.N]

Gold prices erased losses after dipping to the lowest level in a month earlier in the day. Prices of most base metals were down as dollar gained strength. [GOL/][MET/L]

Company-wise, South African miner Sibanye Stillwater said it had entered into a $500 million streaming agreement with gold-focused royalty and streaming firm Franco-Nevada Corp.

Australia’s Paladin Energy has received the final green light it needed from Canadian authorities to buy Fission Uranium in a C$1.14 billion ($789.1 million) deal that cements its position as a major global producer.

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($1 = 1.4384 Canadian dollars)

(Reporting by Ragini Mathur; Editing by Shilpi Majumdar)