(Reuters) – Futures for Canada’s main stock index rose on Wednesday, driven by higher metal prices and the U.S. S&P 500 closed at a record high in the previous session, while investors focused on the Bank of Canada’s interest rate meeting due later in the day.
March futures on the S&P/TSX index were up 0.6% at 7:04 a.m. ET (12:04 GMT).
Gold eked out gains on a softer dollar amid a wait for cues on the Federal Reserve’s rate cut path. Copper prices advanced on reinforced hopes of more stimulus measures from top metals consumer China.
All eyes will be on the Bank of Canada’s decision in its monetary policy meeting, due at 9:45 a.m. ET, which will provide more clarity on the timing of interest rate cuts this year.
The central bank is expected to keep its overnight rate on hold this time. The bank is also expected to release fresh inflation and growth forecasts that could provide insight into the BoC’s view on when borrowing costs may begin to ease.
Money market participants now see a rate cut only in April, with the odds of it happening at 52.5%.
The index has had a downbeat start to the year as economic data at home showed sticky inflation, compelling investors to scale back expectations of an early rate cut.
The Toronto Stock Exchange’s S&P/TSX composite index ended higher on Tuesday, logging its fourth straight day of gains and its highest closing level since Jan. 15.
Amongst individual companies, railroad operator Canadian National Railway reported a higher fourth-quarter profit on Tuesday after the bell.
U.S.-listed shares of tech firm Blackberry tumbled 10.4% in premarket trading after it announced a private offering of $160 million in five-year convertible bonds.
COMMODITIES AT 7:04 a.m. ET
Gold futures: $2,034.8; +0.4%
US crude: $74.13; -0.3%
Brent crude: $79.24; -0.4%
(This story has been corrected to say the U.S. S&P 500 closed at a record high, not hit a record high, in paragraph 1)
(Reporting by Purvi Agarwal in Bengaluru)