Canadian stock index futures edged higher on Tuesday, supported by rising oil prices as investors looked ahead to the release of the U.S. Federal Reserve’s June meeting minutes for fresh clues on the future path of interest rates. Futures tracking the S&P/TSX Composite Index gained 0.35% in early trading, while market participants remained cautious ahead of key central bank signals.
Oil prices advanced after reports of attacks on vessels near the Strait of Hormuz renewed concerns over potential disruptions to global energy shipments. Brent crude climbed 0.83% to $72.59 per barrel, while U.S. West Texas Intermediate crude rose 0.67% to $69.01. Meanwhile, precious metals weakened for a second straight session as a stronger U.S. dollar weighed on prices, with spot gold falling 0.3% and silver declining 1.4%.
Recent economic data, including a softer-than-expected U.S. jobs report and easing geopolitical tensions in the Middle East, have reduced expectations for multiple Federal Reserve rate hikes this year. Traders are currently pricing in one 25-basis-point rate increase before year-end, while the Bank of Canada is widely expected to keep interest rates unchanged at its upcoming policy meeting on July 15. Canada’s resource-heavy benchmark index closed lower on Monday, pressured by declines in both oil and gold prices.
Pic Courtesy: google/ images are subject to copyright
