Investment Manager's Report: Canada's Stock Futures Rise on Strong Commodity Prices and Powell's Speech
Canada's main stock index is looking bullish as futures are up 0.6% on Friday morning, driven by gains in crude and metal prices. Investors are eagerly awaiting Jerome Powell's speech later today, where they hope to get insights into the U.S. interest-rate easing cycle.
The energy sector is in focus as oil prices are on the rise, despite facing a weekly loss. Similarly, the materials sector is expected to see positive impacts as gold and metal prices inch up.
Market participants are anticipating a 25-basis points reduction in U.S. policy rates at the Fed's meeting next month, following recent dovish comments from policymakers. In Canada, retail sales data could support the possibility of a rate cut by the Bank of Canada, especially after the recent low inflation numbers.
Major Canadian banks are gearing up to report their quarterly numbers next week, adding to the market's anticipation. On the corporate front, Canadian National Railway workers are set to return to work after a lockout threat, while the work stoppage at Canadian Pacific Kansas City is expected to continue.
Commodities are showing positive movements with gold at $2,497.42 (+0.57%), US crude at $73.68 (+0.92%), and metal prices also gaining.
Overall, the market sentiment is optimistic, with investors keeping a close eye on economic data and central bank actions. Stay tuned for more updates on Canadian markets and make informed investment decisions.