Sept 1 (Reuters) – Futures tracking Canada’s main stock index started the month on a dour note on Thursday as crude oil and gold prices extended their recent falls amid concerns of a faster-than-expected decline in economic growth.
Oil prices tumbled more than 1.5% as investors worried that aggressive interest rate hikes by central banks would tip the global economy into a recession and dent demand, with renewed COVID-19 curbs in China adding to the pressure.
Bullion prices briefly slid below the key $1,700 per ounce psychological level for the first time in six weeks.
Futures on the S&P/TSX index were down 0.6% at 06:21 a.m. ET (1021 GMT).
S&P Global’s final reading of Canada’s manufacturing purchasing managers’ index for August is scheduled to be released later in the day, while data from the country’s statistics agency is expected to show that the value of building permits likely fell by 0.5% in July.
Government data released on Wednesday showed growth lagged in the second quarter and most likely dipped into negative territory in July, signaling the economy may be cooling more quickly than expected and adding to the negative sentiment.
The Toronto Stock Exchange’s S&P/TSX composite index ended down nearly 1% on Wednesday after heavy losses in energy, materials and healthcare.
Dow e-minis were down 178 points, or 0.56%, while S&P 500 e-minis were down 28.25 points, or 0.71% and Nasdaq 100 e-minis were down 134.25 points, or 1.09%.
Rio Tinto, on Thursday reached an in-principle agreement to buy the rest of Canadian firm Turquoise Hill Resources for $3.3 billion.
Meanwhile, Canada’s Conservatives next month look set to embrace a career politician who has promised to fire the central bank governor and promoted bitcoin as an inflation hedge to become its fourth leader since 2020. (Reporting by Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila)