TSX Set for Weak Start As Commodities Decline

Canada's benchmark index looked set to open in the negative territory on Wednesday, pressured by the weakness in commodity prices.

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

Action Economics said NYMEX crude printed lows of the week at US$68.38 into the New York open, coming from highs of US$69.36 seen in London. Prices were supported overnight by the release of weekly API inventory data, which after the close on Tuesday, revealed a large 6 million bbl draw in crude stockpiles. Estimates had been for a 3 million barrel draw. More recently though, as prices failed to test or break above recent highs near $70, a round of profit taking has set in.

Investors will also keep an eye on corporate earnings, as big players Magna (MG.TO), Thomson Reuters (TRI.TO), and Finning (FTT.TO) released their reports.

The TSX shed 130 points on Tuesday.

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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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