March 14 (Reuters) - Futures for Canada's main stock
index were subdued on Tuesday, as worries about the fallout from
the collapse of Silicon Valley Bank (SVB) continued to weigh,
while markets awaited U.S. inflation data.
Futures on the S&P/TSX index were up 0.1% at 6:48
a.m. ET (1048 GMT), mirroring a rise in U.S. counterparts. Investors will be eyeing U.S. inflation data due 8:30 a.m.
ET on Tuesday for cues on where the Federal Reserve stands on
further monetary policy tightening ahead of its interest rate
decision next week.
A Reuters poll of economists showed that the U.S. Consumer
Price Index (CPI) likely increased by 0.4% last month, after
rising 0.5% in January, amid sticky rental housing costs. On a
yearly basis, CPI grew 6.0% in February, moderating from a 6.4%
rise the previous month.
The benchmark Canadian index had recorded its
lowest closing in over two months on Monday as financials , its biggest sector, logged a more than 2% decline.
Financial stocks around the world have been under immense
selling pressure after SVB's closing by U.S. authorities sparked
contagion fears.
Canada's Deputy Prime Minister and Finance Minister Chrystia
Freeland met with the country's banking regulator and heads of
financial institutions after regulators took temporary control
of SVB's Canadian unit.
The aftershock of SVB's collapse reverberated in the oil
market, knocking oil prices down over 2%. Materials and energy companies have a combined weightage of
about 31% on the main index.
Gold prices edged lower as the dollar regained
strength ahead of U.S. inflation data. Investors would also watch out for Canadian manufacturing
sales data for January due before markets open.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Shilpi
Majumdar)
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