Canadian stock futures rose on Tuesday morning, tracking gains in commodity prices and supported by an optimistic mood in global markets. Investors awaited U.S. inflation data for more clues on the Federal Reserve's next policy moves.
June futures on the S&P/TSX composite index were up 0.3% in early trade. U.S. futures also rose as investors bet that hot U.S. inflation data could mean the Fed skips a rate hike in July. However, most analysts expect the Fed to signal a hike is coming later in the summer.
Separately, analysts anticipate another rate hike from the Bank of Canada in July as the economy runs hot despite aggressive monetary tightening with interest rates at a 22-year high.
Higher commodity prices helped lift Canadian futures. Copper prices rose after China cut interest rates to support growth. Gold prices climbed on a weaker U.S. dollar, while oil prices rebounded from the previous day's drop.
The TSX composite index ended marginally higher in the prior session, helped by gains in the technology sector.
In corporate news, Nippon Steel remains interested in Teck Resources' steelmaking coal assets despite Glencore's recent bid, a spokesperson said.
In summary, sentiment in the Canadian futures market was largely positive ahead of key U.S. inflation data and potential central bank action. Gains in commodity prices and the tech sector provided some support, though investors remained cognizant of central bank tightening cycles on both sides of the border.
