CANADA STOCKS-TSX futures dip as rising oil prices rekindle inflation fears

By Reuters News

Sept 28 - Futures tracking Canada's main stock index fell on Monday, as surging oil prices revived inflation worries ahead of key Canadian and US economic data, due later this week.

December futures on the S&P/TSX index were down 0.5% at 06:12 a.m. ET (1012 GMT).

  • Brent crude futures gained nearly 4% to about $108.25 a barrel after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz O/R

  • The surge in oil prices revived concerns that energy-driven inflation shocks could keep interest rates higher for longer, limiting the room for central banks to ease monetary policy

  • Investors will closely watch for US GDP and Personal Consumption Expenditures inflation data this week for insights into economic growth and the Federal Reserve's policy outlook

  • Market participants will also have their eyes on Canadian GDP data, due on Tuesday, that could offer cues on economic momentum in the country

  • Meanwhile, mining stocks on the TSX could come under pressure on Monday, tracking a dip in precious metal prices

  • Spot gold fell more than 3% to touch its lowest in more than seven weeks, while silver dropped 4.8% GOL/

  • The benchmark index closed higher on Friday, supported by gains in financials .SPTTFS and consumer discretionary .GSPTTCD sectors

  • In company news, International Petroleum Corp IPCO.TO repurchased 148,500 shares last week under its normal course issuer bid, continuing its share buyback program

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report .TO

Canadian dollar and bonds report CAD/ CA/

Reuters global stocks poll for Canada

Canadian markets directory

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.