JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - Canada’s main stock exchange was slightly lower to the flatline in Friday, ahead of a meeting between U.S. President Donald Trump and Russian President Vladimir Putin to discuss a possible Ukraine ceasefire, as well as more key economic data.
By 4.05 ET, the S&P/TSX 60 Futures index standard futures contract traded 4.9 points or 0.3% on Friday.
Toronto Stock Exchange’s S&P/TSX Composite index was slightly below the flatline down 0.04% at 27,905.49.
It closed Thursday 0.3%, or 77 points, lower, retreating from record highs as a sharp rebound in U.S. producer prices challenged the disinflation narrative.
Confidence took a knock on Thursday after the release of the hot U.S. inflation report reduced expectations of easier monetary policy by the Federal Reserve.
While investors still expect the U.S. central bank to cut interest rates next month, the chances of a hefty 50-basis-point reduction have largely disappeared.
At home, the Bank of Canada’s July 30th meeting minutes added little fresh guidance, with policymakers stressing a shorter-term decision horizon given elevated uncertainty and noting that a rate cut could be warranted if conditions weaken and trade-driven inflation pressures ease.
There is also more Canadian economic data for investors to wade through Friday, including manufacturing sales, new motor vehicle sales and wholesales sales, all for June.
U.S. economic data slate is full
Away from Canada, there is some U.S. economic data to study Friday, including the release of import prices, retail sales, industrial production and the University of Michigan consumer sentiment survey.
“The Fed will be paying close attention to this, because if import prices don’t start falling soon then that will signal U.S. corporates are fully paying the tariff and then they have the choice of either passing it onto consumers, thus boosting inflation, or absorbing it in profit margins,” ING analysts said in a note.
Sentiment soured on Thursday after July producer prices ran much hotter than expected.
Crude slips ahead of Alaska meeting
Oil prices edged lower, with traders cautious on how an upcoming meeting between U.S. and Russian leaders in Alaska will affect global supply.
Brent futures slipped 0.5% to $66.54 a barrel, and U.S. West Texas Intermediate crude futures fell 0.6% to $63.60 a barrel.
All eyes are on Friday’s meeting of U.S. President Donald Trump and Russian leader Vladimir Putin where a ceasefire in the Ukraine war is at the top of the agenda. A continued conflict between Russia and Ukraine supports oil markets by limiting the supply of Russian oil.
Gold heading for weekly loss
Gold prices edged higher, but were still heading for weekly losses given reduced hopes for an outsized Federal Reserve rate cut next month.
Spot gold rose 0.1% to $3,338.40 an ounce, while gold futures gained 0.1% to $3,384.40/oz.
Gold prices were poised to lose 1.5% this week, mainly due to a sharp decline at the start of the week when President Donald Trump said gold bars would not face tariffs, but also after elevated U.S. producer prices dampened expectations of a large Federal Reserve rate cut next month.