April 29 (Reuters) - Futures for Canada's main stock index were muted on Wednesday ahead of interest rate decisions from the Bank of Canada and the U.S. Federal Reserve, with markets focused on policymakers' outlook amid the ongoing war in the Middle East.
June futures on the S&P/TSX index were up 0.08% at 07:17 a.m. ET (1117 GMT).
U.S. President Donald Trump said he was unhappy with Tehran's latest proposal to end the war, with the Wall Street Journal reporting that he had instructed aides to prepare for an extended blockade of Iran's ports.
As of Tuesday's close, the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), had fallen 2.8% from its March 2 peak and logged a fourth straight session of declines, its longest such streak since December, underscoring the impact of escalating geopolitical tensions on risk appetite.
Oil prices rose nearly 3% on Wednesday, with the Brent contract hitting a one-month high.
Spot gold and silver fell as rising oil prices fueled concerns of persistent inflation, with traders awaiting the Fed's policy decision - where they expect the central bank to leave rates unchanged - and Chair Jerome Powell's remarks on interest rate outlook.
The Bank of Canada will announce its monetary policy decision at 9:45 a.m. ET (1345 GMT). It will also release the quarterly monetary policy report, where it will present its forecasts for the economy and on inflation.
Economists have said that the oil price shock from the war is unlikely to have a lasting impact on inflation, which should allow the BoC to leave its benchmark interest rate unchanged at 2.25%.
IT and business consulting firm CGI's (GIBa.TO), second-quarter profit met analysts' expectations.
FOR CANADIAN MARKETS NEWS, CLICK ON CODES:
TSX market report
Canadian dollar and bonds report CA/
Reuters global stocks poll for Canada ,
Advertisement · Scroll to continue
Canadian markets directory
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Diti Pujara
