CANADA STOCKS-TSX futures down ahead of economic data; oil slides

BY Reuters | ECONOMIC | 10/01/24 06:55 AM EDT

Oct 1 (Reuters) - Futures for Canada's main stock index edged lower on Tuesday ahead of domestic and the U.S. economic data that will provide insights on their interest rate paths, while oil prices slid on prospects of additional supply.

December futures on the S&P/TSX index were down 0.1% at 6:25 a.m. ET (1025 GMT).

The Toronto Stock Exchange's S&P/TSX composite index ended higher on Monday, notching its best quarter in four years, boosted by energy and technology shares.

For September, the index rose 2.8%, while it was up 9.7% in the third quarter, as the Bank of Canada cut interest rates three times since June and after the Federal Reserve began its own easing campaign last month.

For the day, energy sector will continue to remain in focus as oil futures took a beating after a stronger supply outlook and concerns of tepid global demand outweighed fears over escalating conflict in the Middle East.

Materials group, which houses Canada's base and precious metal miners, could see an impact after base metals ticked up, rebounding from losses in the previous session triggered by profit taking, as China's stimulus provided a cushion.

Gold prices were up and hovered below the record peak after the U.S. Federal Reserve Chair Jerome Powell tempered expectations for more hefty interest rate cuts this year.

Across the border, futures tied to Wall Street's main indexes were mixed as investors awaited the U.S. jobs opening data that will provide a more clear direction for the markets.

Back home, investors will closely monitor S&P Global's manufacturing Purchasing Managers' Index (PMI) later in the day for more clues on the health of the Canadian economy.

COMMODITIES AT 6:25 a.m. ET

Gold futures: $2660.0; +0.5%

US crude: $67.61; -0.8%

Brent crude: $71.21; -0.7%

(Reporting by Shubham Batra in Bengaluru; Editing by Leroy Leo)

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Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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