(Reuters) – Futures for Canada’s main stock index rose on Friday as copper prices surged on a potential output cut by China, while investors awaited domestic housing starts data to gauge the strength of the Canadian economy.
March futures on the S&P/TSX index were up 0.3% at 6:45 a.m. ET (10:45 GMT) after the benchmark S&P/TSX index retreated from a two-year high in the previous session as traders revised their rate-cut bets.
The focus of the day will be the materials sector that houses precious and base metals miners, as Shanghai copper prices hit a record high while prices in London touched an 11-month peak, buoyed by a potential output cut in top producer China. [MET/L]
Gold managed to eke out gains but was set for its first weekly drop in four weeks after surprisingly hot U.S. inflation readings prompted traders to re-think imminent Fed rate cuts. [GOL/]
Energy shares may see a decline with Brent futures falling 0.7% to $84.85 a barrel after crossing $85 a barrel for the first time since November on Thursday.
Investors will also keep an eye on the housing data, due at 8:15 a.m. ET, which is expected to show that the seasonally adjusted annualized rate of housing starts rose to 230,000 units in February, according to a Reuters poll of economists, from 223,600 units a month ago.
In the U.S., futures moved slightly higher as investors braced for a Fed meeting next week that could provide clues on the timing of the central bank’s interest rate cuts. [.N]
In domestic company news, TC Energy agreed to sell its Prince Rupert natural gas pipeline project to two partners in Ksi Lisims LNG, a proposed Canadian export terminal, the North American pipeline operator said on Thursday.
COMMODITIES AT 6:45 a.m. ET
Gold futures: $2,174.3; +0.3% [GOL/]
US crude: $80.69; -0.7% [O/R]
Brent crude: $84.85; -0.7% [O/R]
($1= C$1.3535)
(Reporting by Shubham Batra in Bengaluru; Editing by Vijay Kishore)
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