TSX seen lower; Jackson Hole symposium in spotlight

Published 21/08/2025, 12:58
© Reuters

Investing.com - Canada’s main stock exchange futures slipped marginally lower Thursday, with investors adopting a cautious stance ahead of the start of the U.S. Federal Reserve’s eagerly-anticipated Jackson Hole symposium.

By 07.55 ET (11:55 GMT), the S&P/TSX 60 index standard futures contract had fallen just 0.1%.

Toronto Stock Exchange’s S&P/TSX composite index closed Wednesday 0.2%, or 55 points, higher at 27,878.76.

The annual Fed conference in Jackson Hole, Wyoming begins later on Thursday and will host central bankers from around the world. The highlight is expected to be Fed Chair Jerome Powell’s speech on Friday for clues to upcoming monetary policy moves.

Investors are searching for hints about a potential September cut after expectations soared in the wake of a surprisingly soft payrolls at the start of the month.

Market-implied odds of a quarter-point cut on September 17 currently stand at 80%, down from 84% a day ago. 

At home, investors will look to the release of July’s industrial producer prices for clues over the likely path of inflation going forward.

The July IPPI index is expected to rise 0.3% on the month in July, easing from a 0.4% rise the prior month, with the annual figure seen dropping from 1.7% in June.

U.S. jobless claims due

Away from Canada, the minutes from the last Federal Reserve meeting indicated that the majority of policymakers still remained concerned about the labor market and inflation, as the two who dissented against the U.S. central bank decisions to leave interest rates unchanged last month appear not to have been joined by other policymakers.

Weekly U.S. jobless claims are due later in the session, and are expected to show a small increase in the number of Americans claiming unemployment benefits for the first time.

Existing home sales for July and the Philadelphia Fed’s business index are also due for release.

Crude boosted by resilient U.S. demand

Oil prices rose, adding to recent gains and buoyed by signs of resilient demand in the U.S., the world’s largest consumer of energy.

At 07:55 ET, Brent futures gained 0.6% to $67.22 a barrel, and U.S. West Texas Intermediate crude futures rose 0.5% to $63.03 a barrel.

Both contracts climbed over 1% in the prior session.

U.S. crude inventories fell by 6 million barrels last week, the U.S. Energy Information Administration said on Wednesday, while gasoline stocks dropped by 2.7 million barrels, both more than expected.

This indicated steady driving demand during the peak summer travel season, helping offset some concerns about global economic uncertainty.

Gold prices slipped marginally lower, pressured by increasing uncertainty over U.S. interest rates ahead of the start of the Federal Reserve’s Jackson Hole Symposium. 

Spot gold fell 0.2% to $3,340.95 an ounce and gold futures for October fell 0.1% to $3,383.70/oz.

The yellow metal has traded in a largely rangebound fashion this week as uncertainty over U.S. rates deterred any major trades. 

 

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