(Reuters) – Futures linked to Canada’s main stock index rose marginally on Monday as crude and metal prices gained, while investors exercised caution ahead of a key U.S. inflation data reading due later this week.
September futures on the S&P/TSX index were up 0.1% at 6:33 a.m. ET (1033 GMT).
Toronto markets posted a weekly gain on Friday after a volatile week, where recessionary fears in the United States and the unwinding of carry trades funded by the Japanese yen had sparked a global equity sell-off.
However, a U.S. jobs report later in the week suggested the concerns were overblown, helping investor sentiment recover.
Canadian miners were poised for a positive start as gold prices edged higher and prices firmed. [GOL/] [MET/L]
Oil prices extended gains and were set to lift the energy sector higher, buoyed by easing recession fears in the United States and geopolitical tensions in the Middle East. [O/R]
Investors now will keep a close eye on the U.S. consumer price index (CPI) data due Wednesday to gauge the Federal Reserve’s stance on its monetary policy, especially after the recent unemployment numbers triggered recessionary fears.
Markets unanimously anticipate a rate cut at the U.S. central bank’s September meeting.
In corporate news, South Africa-based gold producer Gold Fields (NYSE:) Ltd agreed to buy Canadian Osisko Mining for about C$2.16 billion ($1.57 billion) on a fully-diluted basis.
Meanwhile, gold miner Barrick Gold (NYSE:) edged past Wall Street estimates for second-quarter profit.
COMMODITIES
Gold: $2442.20; +0.50% [GOL/]
US crude: $77.61; +1.02% [O/R]
: $80.30; +0.80% [O/R]
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($1 = 1.3723 Canadian dollars)