TSX futures inch lower ahead of August inflation report

Kitco Media
By Reuters
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Reuters
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Sept 14 (Reuters) - Futures tracking Canada's main stock index inched lower on Monday ahead of August CPI data, as rising crude prices rekindled inflation ​worries, while weaker gold prices dampened sentiment.

September futures on ‌the S&P/TSX index were down 0.17% at 05:54 a.m. ET.

Crude prices rose 2.6% following attacks on Saudi Arabia's energy infrastructure, which led to the shutdown of its East-West ​pipeline, compounding worries over supply disruptions.

Canada's August Consumer Price Index (CPI) data ​is expected later in the day and economists polled ⁠by Reuters expect prices to remain unchanged from the previous month.

Traders ​are pricing in a nearly 40-basis-point rate hike by the Bank ​of Canada by year-end, according to LSEG data.

Investors will also turn their attention to the Federal Reserve's policy meeting, which begins on Tuesday. U.S. inflation data released on ​Friday, showing an acceleration in consumer prices in August, had ​reinforced expectations that the central bank would hike rates.

Expectations of a rate hike weighed on ‌precious ⁠metal prices, with gold slipping 1.6%, and silver down 3.3%.

The tech sector will remain in focus as AI-linked stocks on Wall Street fell in premarket trading after the heads of Anthropic and OpenAI warned that ​the pace of ​AI development ⁠needed to slow down.

Meanwhile, Canadian Prime Minister Mark Carney said on Sunday that the country is seeking a "unique ​alliance" with the European Union but not a membership.

S&P ​Dow ⁠Jones said on Friday it would revise the eligibility criteria for S&P/TSX Canadian indices, which investors believe could pave the way for the inclusion of ⁠copper ​producer Anglo-Teck.

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Reporting ​by Darshan Kumar and Utkarsh Hathi in Bengaluru; Editing by Diti Pujara

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