TSX futures slip on lower metal prices; economic data on tap

The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren/File Photo

Futures tracking Canada’s main stock index edged lower on Monday, as declining metals prices and strengthening of the U.S. dollar fueled concerns of interest rates staying higher for a longer period. September futures on the S&P/TSX index were down 0.1% at 7:13 am ET (1113 GMT).

Material stocks are expected to take a hit due to the fall in copper and gold prices, while the U.S. dollar gains strength amid indications from U.S. Federal Reserve officials that interest rates will remain elevated for an extended period. Industrial metal prices have also been under pressure this year due to reduced demand in China, where the property market has stalled and manufacturing has contracted.

The S&P/TSX composite index, which closed at 19,779.97 points on Friday, marking its lowest closing level since August 24, is expected to be impacted by this decline. The index lost 4.1% for the week, its biggest weekly decline since September 2022, causing investors to worry about sustained high borrowing costs.

Investors are closely watching for Canada’s GDP estimates for July, which are likely to show a 0.1% increase in economic growth. Additionally, they are awaiting a series of U.S. data scheduled for this week, including durable goods data, the Personal Consumption Expenditures (PCE) price index for August, second-quarter GDP, and remarks by Fed policymakers, including Chair Jerome Powell.

In early trading, Dow e-minis were down 27 points, or 0.08%, while S&P 500 e-minis were down 4.5 points, or 0.1%, and Nasdaq 100 e-minis were down 19 points, or 0.13%.

At 7:13 a.m. ET, gold futures were down 0.1% at $1,925.7, while U.S. crude was unchanged at $90.02 and Brent crude was up 0.1% at $93.37.

Investors are advised to keep an eye on Canadian markets news, including the TSX market report and the Canadian dollar and bonds report, as well as the CA/Reuters global stocks poll for Canada.

Reporting by Khushi Singh in Bengaluru; Editing by Tasim Zahid