US stock futures flounder amid tech weakness, Fed caution
Investing.com - Canada’s main stock exchange was higher Wednesday, ahead of the U.S. Federal Reserve’s Jackson Hole symposium later this week.
By 4.01 ET, the S&P/TSX 60 index standard futures contract had inched up by just 3.7 points, or 0.22%.
Toronto Stock Exchange’s S&P/TSX Composite index ended 54 points or 0.20% up at 27,878.76.
Technology shares were the worst-hit on Wall Street, weighed by uncertainty over monetary policy, as investors locked-in recent profits in the sector. Reports that the U.S. government was considering taking equity stakes in major chipmakers also weighed on the sector.
At home, July’s inflation eased more than expected, but markets aren’t convinced a Bank of Canada rate cut will land as soon as September.
Canadians moved $23 billion into U.S. assets last month, and foreign investment in homegrown stocks remains lackluster.
Air Canada (TSX:AC), meanwhile, jumped after reaching a last-minute deal to avert a strike, though it paused financial forecasts to assess the recent disruption.
The new housing price index for July is due later in the session, and is expected to show a minor bounce of 0.1% after the prior month’s 0.2% drop.
Fed’s minutes
Away from Canada, U.S, Federal Reserve policymakers continued to echo a patient approach on further rate cuts pointing to early signs of tariff-induced inflation that suggest it would be appropriate to wait for clarity on the full impact of President Trump’s tariffs, according to the minutes of the Fed’s July 29-30 meeting.
.Crude bounces after losses
Oil prices rose Wednesday, bouncing after the previous session’s losses as traders awaited fresh news over the next steps to end the war in Ukraine.
At 12.05 ET, Brent futures gained 1.6% to $66.89 a barrel, and U.S. West Texas Intermediate crude futures rose 1.75% to $62.85 a barrel.
Prices settled down more than 1% on Tuesday on optimism that a deal to end the war seemed closer, which would likely lead to an easing of sanctions on Russia and an increase in global supply.
Gold prices edged higher Wednesday, rebounding after losing ground this week amid heightened uncertainty over U.S. interest rates before a key central bank conference.
spot gold rose 0.75% to $3,340.54 an ounce and gold futures for October gained 0.72% to $3,384.20 /oz.
The yellow metal saw limited demand even as sentiment in broader financial markets turned largely risk-off, with Wall Street and global stocks logging steep losses this week.