Futures for Canada’s primary stock index saw modest gains on Friday, buoyed by a surge in commodity prices and positive earnings reports from major companies on Wall Street, although some caution prevailed ahead of a crucial inflation data release in the United States.
June futures on the S&P/TSX index rose by 0.2% at 6:26 a.m. ET (10:26 GMT).
The energy sector is poised for weekly gains as oil prices climbed, propelled by optimistic remarks from a senior U.S. official regarding economic growth and persistent supply concerns stemming from conflicts in the Middle East.
Gold prices rebounded, paring some of their weekly losses, influenced by mixed U.S. economic indicators and robust gold demand from China. Meanwhile, copper prices on the London Metal Exchange surged to a two-year peak, surpassing $10,000 per metric ton on Friday.
Market focus remains on the release of personal consumption expenditure (PCE) data for March in the U.S., scheduled for 8:30 a.m. ET on Friday. This data is closely monitored by the Federal Reserve as a key gauge of inflation, likely prompting investors to adjust their expectations regarding the timing of potential interest rate adjustments throughout the year.
The latest quarterly gross domestic product (GDP) report published on Thursday indicated a greater-than-anticipated slowdown in the U.S. economy, while accelerating inflation dampened hopes of imminent interest rate cuts.
The S&P/TSX composite index of the Toronto Stock Exchange experienced marginal gains of 0.1%, rebounding from a 1% decline earlier in the session, as robust commodity prices helped offset concerns about persistent inflationary pressures in the U.S.
In corporate news, transportation and logistics firm TFI International reported its first-quarter results, falling short of analysts’ projections.
Commodity Prices at 6:26 a.m. ET:
Gold Futures: $2,348.5; +0.8%
U.S. Crude Oil: $83.88; +0.4%
Brent Crude: $89.29; +0.3%
