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TSX May Start Lower Ahead of BoC Rate Announcement

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Canada's benchmark index looked set to open lower on Wednesday amidf anticipation for Bank of Canada's rate decision and as gold prices decline.

Stock futures for the December quarter on the S&P TSX index were down 0.1% recently.

Bank of Canada will announce its rate decision at 10 am ET and is widely expected to interest rates by 25 basis points to 1.75%.

Meanwhile, Action Economics said gold futures pulled back, as the US dollar index rallied to two-month highs of US$96.53. The contract had printed three-month highs of US$1,237.80 on Tuesday, on the back of safe-haven buying, as global equities melted down.

Conversely, WTI crude prices were higher, with oil markets finding a toehold after Tuesday's near 5% rout. The low was seen after Saudi Arabia, feeling the wrath of the global community over the Khashoggi case, pledged to keep open its crude supply spigot to head of the impact of US sanctions on Iran.

The TSX lost 127 points on Tuesday, led lower by energy stocks.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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