11 months ago
TSX futures dip ahead of key tech earnings, crucial U.S. economic data
Investing.com - Futures tied to Canada’s main stock exchange edged lower on Wednesday, as investors eyed a bevy of corporate earnings and key U.S. economic data against indications of a possible easing in aggressive U.S. tariffs.
By 07:10 ET (11:10 GMT), the S&P/TSX 60 index standard futures contract had fallen by 4 points, or 0.2%.
Toronto Stock Exchange’s S&P/TSX composite index ended higher by 75.89, or 0.3%, at 24,874.48, notiching its highest closing level since April 2.
The uptick came after current Canadian Prime Minister Mark Carney’s Liberals topped the rival Conversatives in a parliamentary election on Monday. The Liberals’ victory was partly fueled by a widespread backlash to U.S. President Donald Trump’s tariffs on Canada and threats to annex the country.
Carney has adopted a tough line with Trump, and has vowed to shepherd the economy through a trade war by lifting public spending.
U.S. futures mixed
U.S. stock futures hovered around both sides of the flatline ahead of the release of a deluge of economic data and major corporate earnings, as a volatile month comes to an end.
At 07:11 ET, Dow Jones futures gained 49 points, or 0.1%, while S&P 500 Futures fell 10 points, or 0.2%, and Nasdaq 100 Futures slipped 71 points, or 0.4%.
The main stock indices closed higher Tuesday, with the Dow Jones Industrial Average gaining 0.8%, and both the S&P 500 index and the NASDAQ Composite adding 0.6%.
It has been a turbulent month on Wall Street, with the major averages gradually narrowing the month’s losses after the announcement of U.S. tariffs at the start prompted heavy selling. The S&P 500 briefly entered a bear market early in April, but is now down just 0.9% this month. The Dow is on pace for a 3.5% loss in April, while the Nasdaq is about 0.9% higher.
Easing trade tensions help tone
Sentiment has been improving on the hope that the worst of the tariffs announcements may be behind the market, helped by Trump’s move to sign two orders on Tuesday to ease the impact of auto tariffs, offering tax credits and tariff relief on materials.
The decision came as Trump visited Michigan, a major auto manufacturing hub, just before a new set of 25% tariffs on auto parts were about to begin.
In another positive note, Commerce Secretary Howard Lutnick told CNBC that the U.S. had reached a deal with one foreign country to permanently ease Trump’s so-called "reciprocal" tariffs. Lutnick did not name the country.
Q1 growth data, PCE inflation awaited
That said, some economic damage may already have been done, as data on Tuesday showed that the consumer confidence index dropped to its lowest reading since May 2020.
Additionally, JOLTS job openings for March fell to 7.192 million from 7.48 million.
The spotlight will now be on the advance GDP estimate for the January-March quarter due later in the session, amid expectations this will show the weakest growth rate since the second quarter of 2022, with a negative read possible.
The other two key releases today are the ADP (NASDAQ:ADP) employment figures for April and March’s core PCE - the Federal Reserve’s preferred measure of inflation.
These data points could offer an early indicators of whether Trump’s tariffs are denting the wider economy -- an outcome that has been predicted by many economists.
Meanwhile, a busy earnings week, with about one-third of S&P 500-listed firms slated to post results, continues, with the focus mostly on numbers from software giant Microsoft (NASDAQ:MSFT) and Facebook-owner Meta (NASDAQ:META) Platforms after the close Wednesday.
Crude set for monthly drop
Oil prices fell Wednesday, on course for their largest monthly drop in more than three years as the global trade war hit demand growth forecasts.
Both contracts have lost over 15% so far this month, the biggest percentage drop since November 2021.
Worries about demand amid the trade war have weighed on investor sentiment, while weak Chinese manufacturing activity data, released earlier Wednesday, has also played into this narrative.
Gold extends losses
Gold prices extended declines, as the Trump administration reduced the impact of auto tariffs, while investors cautiously awaited key U.S. data to gauge the Federal Reserve’s interest rate outlook.
Despite the dip, gold was set for its fourth consecutive monthly rise, with a nearly 6% jump in April so far.
As of 07:17 ET, spot gold fell 1.2% to $3,278.15 per ounce, while gold futures expiring in June lost 1.4% to $3,286.56 an ounce.
(Peter Nurse and Reuters contributed reporting.)
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