Futures for Canada's main stock index were subdued on Wednesday, as global sentiment was hit by soaring inflation and economic growth worries ahead of the Bank of Canada's rate decision due later in the day.

June futures on the S&P/TSX index were flat at 6:56 a.m. ET.

Keeping Canadian futures afloat, oil prices firmed on after European Union leaders agreed to a partial and phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai.

The Bank of Canada is expected to issue a scheduled rate decision at 10:00 a.m. ET. It is likely to raise its key overnight interest rate to 1.50% from 1.0%.

Separately, domestic manufacturing Purchasing Managers' Index for May is also due for release.

Global stocks fell and bond yields rose on Wednesday, while the dollar strengthened, as investors fretted over the impact on global growth from looming interest rate rises.

The Toronto Stock Exchange's S&P/TSX composite index ended 0.9% lower at 20,729.34 on Tuesday, after seven straight days of gains.

Dow e-minis were up 98 points, or 0.3%, at 6:56 a.m. ET. S&P 500 e-minis were up 1.75 points, or 0.04%, and Nasdaq 100 e-minis were down 15.75 points, or 0.12%.

 

TOP STORIES

British energy services provider Wood Plc said on Wednesday that it had agreed to sell its built environment consulting division to Canada's WSP Global Inc for $1.9 billion, in an effort to raise funds and cut debt.

ANALYST RESEARCH HIGHLIGHTS

CCL Industries Inc: National Bank of Canada starts with "outperform" rating

EQ Inc: Canaccord Genuity cuts to "hold" from "speculative buy"

Sun Life Financial Inc: National Bank of Canada cuts target to C$68 from C$72

 

COMMODITIES AT 7:00 a.m. ET

Gold futures: $1832.2; -0.7%

US crude: $115.98; +1.16%

Brent crude: $117.05; +1.25%

 

U.S. ECONOMIC DATA DUE ON WEDNESDAY

0815 ADP national employment for May: Expected 300,000; Prior 247,000

0945 S&P Global Manufacturing PMI Final for May: Prior 57.5

1000 Construction spending mm for Apr: Expected 0.5%; Prior 0.1%

1000 ISM Manufacturing PMI for May: Expected 54.5; Prior 55.4

1000 ISM Manufacturing Prices Paid for May: Expected 83.0 Prior 84.6

1000 ISM Manufacturing Employment Index for May: Prior 50.9

1000 ISM Manufacturing New Orders Index for May: Prior 53.5

1000 JOLTS job openings for Apr: Expected 11.400 mln; Prior 11.549 mln

1030 Texas Service Sector Outlook for May: Prior 8.2

1030 Dallas Fed Services Revenues for May: Prior 11.2

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report

Canadian dollar and bonds report

Reuters global stocks poll for Canada

Canadian markets directory ($1= C$1.26) (Reporting by Amal S in Bengaluru; Editing by Amy Caren Daniel)


Reuters