(Reuters) – Futures on Canada’s main stock index fell on Monday, dragged down by bullion and oil prices as investors feared an aggressive central bank policy tightening could trigger a global economic slowdown potential.
September futures on the S&P/TSX index were down 0.6% at 7:09 a.m. ET, after the Toronto Stock Exchange’s S&P/TSX Composite Index ended Friday at its lowest closing level. over two months.
Oil prices fell 1%, continuing their downward trend for a second straight day, while gold prices hovered at their lowest level in 2.5 years amid a stronger dollar and rising bond yields. [O/R][GOL/]
A rising dollar makes the yellow metal more expensive for other currency holders, while higher interest rates dampen the appeal of zero-return bullion.
Last week, the TSX fell 4.7% as worries about the economic impact of central bank tightening overshadowed national data showing easing inflationary pressures. The index has fallen 4.4% so far this month and around 16% from its March closing high.
Futures in US markets looked gloomy after a week of heavy selling, triggered by hikes by global central banks. Dow e-minis were down 229 points, or 0.77% as of 7:09 a.m. ET, while S&P 500 e-minis were down 31.5 points, or 0.85% and Nasdaq 100 e-minis were down 82.75 points, or 0.73%. [.N]
HC Wainwright started covering gold mining company Victoria Gold Corp with a “buy” rating and a PT of C$23.
Meanwhile, a government official said Sunday it would take Canada several months to restore critical infrastructure after powerful storm Fiona left an “unprecedented” trail of destruction.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Anil D’Silva)