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CANADA STOCKS-TSX futures dip as precious metals slide
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CANADA STOCKS-TSX futures dip as precious metals slide
May 28, 2024 4:32 AM

May 28 (Reuters) - Futures for Canada's main stock index

edged lower on Tuesday as prices of precious metals fell, while

investors awaited producer prices data and another inflation

report from the United States for more clues on the central

bank's interest-rate path.

June futures on the S&P/TSX index were down 0.2% at

6:45 a.m. ET (10:45 GMT).

Markets will keep a close eye on the producer prices data

for April, due at 0830 ET, after consumer price inflation (CPI)

rate slowed to 2.7% last month and core measures continued to

ease, bringing the CPI closer to the Bank of Canada's 2% target.

Later in the week, the personal consumption expenditure

(PCE) price index - U.S. Federal Reserve's preferred gauge of

inflation - will be on investors' radar for the timings of

potential interest rate cuts by the U.S. central bank.

Materials sector, which houses Canada's precious and base

metal miners, will grab focus, with prices of gold and

silver dropping ahead of key U.S. inflation data.

However, prices of base metals rose, supported by the

prospects of interest rate cuts by the European Central Bank, a

weaker dollar and China's moves to help the property sector.

Energy shares could also see an impact after oil prices

moved higher as the prospect of OPEC+ maintaining oil supply

curbs at its June 2 meeting and hopes of strong U.S. summer fuel

demand balanced concern about higher-for-longer U.S. rates.

The Toronto Stock Exchange's S&P/TSX composite index

ended higher on Monday, moving closer to the record

closing high it posted last week at 22,468.16.

Stateside, stock index futures ticked higher after investors

returned from the extended weekend.

Bank of Nova Scotia ( BNS ) reported a fall in

second-quarter profit as the lender set aside larger loan loss

reserves in case customers fall behind on paying back debt in an

uncertain economy.

COMMODITIES AT 6:45 a.m. ET

Gold futures: $2,346.1; -0.5%

US crude: $79.02; +1.7%

Brent crude: $83.34; +0.3%

($1= C$1.3626)

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