(Reuters) – Futures for Canada’s resources-heavy main stock index rose on Thursday as oil prices recouped early losses, while a sharp drop in gold kept gains in check after hawkish Federal Reserve commentary.
Futures on the S&P/TSX index were up 0.1% at 6:34 a.m. ET (1134 GMT), while their U.S. peers fell after the Fed on Wednesday raised interest rates as expected but said it would keep hiking them further. [.N]
Fed Chair Jerome Powell on Wednesday said interest rate hikes would persist next year even as the U.S. economy faces the threat of a recession, sparking a selloff on Wall Street and also knocking down Canada shares.
Investors will also be on the lookout for interest rate decisions by the European Central Bank and the Bank of England later in the day, with both central banks expected to hike lending rates by half a percentage point.
In a bright spot, oil prices steadied after early declines as the dollar firmed, while likely increases in interest rates by central banks also heightened demand concerns. [O/R]
Gold prices lost more than 1% as the greenback strengthened. [GOL/]
On the docket, domestic housing starts data is due at 8:15 a.m. ET.
Among single stocks to look out for, TC Energy Corp said on Wednesday it was resuming operations in a section of its Keystone pipeline a week after a leak in rural Kansas triggered a shutdown.
Danish brewer Carlsberg said it had agreed to buy Canadian Waterloo Brewing for a total equity value of around 144 million Canadian dollars ($106 million) in cash.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Vinay Dwivedi)