Canadian stock futures slip ahead of Fed meeting, materials stocks expected to drag

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Canada,Stock Market,Futures

Futures for Canada's main stock index slipped on Wednesday as investors grew cautious ahead of the U.S. Federal Reserve's monetary policy meeting later in the day, while a drop in metal prices is expected to drag materials stocks.

- Futures for Canada's main stock index slipped on Wednesday as investors grew cautious ahead of the U.S. Federal Reserve's monetary policy meeting later in the day, while a drop in metal prices is expected to drag materials stocks.The Fed is widely expected to keep interest rates on hold with investors mainly focused on Fed Chair Jerome Powell's conference at 1430 ET looking for clues on how long the central bank could keep rates elevated.

Investors will also be on the lookout for Canada's factory data for October, due at 0930 ET, while across the border, U.S. ADP National Employment report and Institute for Supply Management's survey on manufacturing activity last month will provide more indications on the strength of the country's economy.

Materials stocks are expected to take a hit as gold prices eased, while a stronger U.S. dollar and renewed concerns over China's economic health pressured prices of copper. The Toronto Stock Exchange's S&P/TSX composite index ended up 16.71 points, or 0.1%, at 18,873.47 on Tuesday. However, for the month of October it lost 3.4%, posting its third straight monthly declines.

U.S. stock index futures drifted lower on Wednesday as longer-dated Treasury yields rose ahead of the U.S. central bank's monetary policy decision meeting. Brent crude: $85.94; +1.1%

 

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