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CANADA STOCKS-TSX futures fall as China stimulus-led optimism fades
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CANADA STOCKS-TSX futures fall as China stimulus-led optimism fades
Sep 26, 2024 11:41 AM

Sept 25 (Reuters) - Futures tied to Canada's

resource-heavy main stock index edged down on Wednesday tracking

lower oil prices as analysts flagged concerns that China's

stimulus may not be sufficient to immediately boost domestic

demand.

December futures on the S&P/TSX index were down

0.2% at 6:13 a.m. ET (10:13 GMT).

China unveiled its bumper stimulus package on Tuesday to

revive its struggling economy from a deflationary slump,

boosting stocks markets globally.

Canada's composite index closed at a record high

for the fourth straight session on Tuesday, benefiting from a

surge in energy and mining shares.

However, analysts remained skeptical about whether it would

provide an immediate boost to the Chinese economy, given weak

credit demand from businesses and consumers.

Oil prices fell after Tuesday's climb and could weigh on

Canada's heavyweight energy stocks.

The materials sector could track gold prices, which pared

gains after hitting a record high earlier in the day, while

copper prices declined as investors booked profits after

previous session's rally.

In the U.S., Wall Street futures slipped on Wednesday as

investors awaited more clues on the health of the economy and

the outlook for interest rate cuts.

With already one rate cut at hand, investors are pricing in

a 59.1% chance of another 50-basis point trim at the U.S.

Federal Reserve's next policy in November.

Markets will also assess comments from Fed Chair Jerome

Powell and personal consumption expenditures data - the central

bank's preferred inflation measure - scheduled later in the

week.

In corporate news, Canadian investment trust Middlefield

Global Real Asset Fund said its unitholders approved

its merger with mutual fund Real Estate Split Corp.

COMMODITIES

Gold: $2,655.8; -0.02%

US crude: $71.1; -0.6%

Brent crude: $74.73; -0.6%

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report

Canadian dollar and bonds report

Reuters global stocks poll for Canada

Canadian markets directory

($1 = 1.3439 Canadian dollars)

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