Canadian stock index futures slipped on Tuesday as investors awaited domestic inflation data to gauge the path of future interest rate hikes, while caution gripped global markets ahead of the U.S. Federal Reserve’s policy decision on Wednesday.
The TSX Composite advanced 176.5 points to conclude Monday at 19,562.38.
Futures sank 0.2% early Tuesday.
The Canadian dollar faded 0.27 cents to 75.24 cents U.S.
On the economic slate, Statistics Canada said its consumer price index rose 7.0% on a year-over-year basis in August, down from a 7.6% gain in July.
On a seasonally adjusted monthly basis, the CPI rose 0.1% in August.
Inflation numbers could influence traders’ expectations around interest rate hikes by the Bank of Canada (BoC) ahead of a policy meeting next week.
Money market traders have fully priced in a 50-basis-point rate hike by the BoC. The central bank has already raised rates by 300 basis points in just six months to 3.25%, a 14-year high.
The TSX Venture Exchange dropped 4.14 points Monday to 625.92.
Stock futures slipped Tuesday as Wall Street looked to build on a modest rebound ahead of another rate hike from the Federal Reserve.
Futures for the Dow Jones Industrials collapsed 107 points, or 0.3%, early Tuesday to 31,010.
Futures for the S&P 500 fell 17.5 points, or 0.5%, to 3,899.75
Futures for the NASDAQ Composite Index slid 73.25 points, or 0.6%, to 11,950.75.
Ford stock fell 4.5% in the premarket after it warned that quarterly earnings would take a hit of about $1 billion from increased supplier costs and parts shortages.
The Federal Open Markets Committee kicks off its September meeting on Tuesday, and the central bankers are expected to announce a 0.75-percentage-point rate hike on Wednesday. Stocks have tumbled in recent weeks as comments from Fed Chair Jerome Powell and an unexpectedly hot August consumer price index report caused traders to prepare for even higher rates until inflation cools.
On the economic front, investors will get a fresh look at the housing market on Tuesday morning with the August reports for housing starts and building permits.
In Japan, the Nikkei 225 returned from a long weekend to gain 0.4%, while in Hong Kong, the Hang Seng shot higher 1.2%.
Oil prices gained 14 cents to $85.87 U.S. a barrel.
Gold prices moved downward $1.40 to $1,676.80 U.S. an ounce.