TSX FUTURES CLIMB AFTER POWELL'S TESTIMONY BOOSTS RATE-CUT BETS

(Reuters) - Futures linked to Canada's main stock index rose on Wednesday, lifted by gains in oil and precious metal prices, while Federal Reserve Chair Jerome Powell acknowledging in his testimony that inflation had been improving solidified rate-cut hopes. 

The S&P/TSX 60 futures SXFcv1 were up 0.51% by 06:24 a.m. ET (1024 GMT).

Gold prices rose on Powell's comments that firmed the case of a rate cut, while oil futures, rose but the gains were in check after China's inflation data. [O/R] [GOL/]

On the first day of congressional testimony, Fed Chair Powell's acknowledged that the U.S. economy was no longer overheated and was back to its pre-pandemic levels, suggesting a stronger case of future interest rate cuts.

However, Powell added he did not wish to send any signals on the timing of future cuts.

Investors will maintain their focus on the second day of Powell's testimony at 10:00 a.m. ET (1400 GMT).

Tomorrow's U.S. consumer price index (CPI) numbers will be the main event for the week that will help markets reassess the interest-rate trajectory in the world's biggest economy.

Market participants currently see a 73.2% likelihood of a rate cut by the U.S. central bank in September.

The Bank of Canada, which traditionally takes cues from the U.S. counterpart, will host its next policy meeting on July 24, with high expectations for a rate cut, especially after the jobless rate jumped to a 29-month high.

Separately, a report showed that Canada's top property and casualty insurers have invested more than $14.30 billion in fossil fuel production, at a time when climate change is driving up risks for the industry.

COMMODITIES

Gold: $2373.52; +0.42% [GOL/]

US crude: $81.61; +0.3% [O/R]

Brent crude: $84.78; +0.1% [O/R]

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($1 = 1.3631 Canadian dollars)

(Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay Kishore)

2024-07-10T11:25:10Z dg43tfdfdgfd