(Reuters) – Futures tied to Canada’s main stock index were flat on Tuesday as investors awaited the U.S. Federal Reserve’s outlook on interest rates and economic growth in the backdrop of an ongoing trade war.
The S&P/TSX index futures were up 0.04% at 0650 ET (1050 GMT). U.S. stock index futures also struggled for direction.
The benchmark index rallied for a second straight day on Monday as some investors looked at the recent tariff-related selloff as a buying opportunity.
The Fed is widely expected to keep rates unchanged after its two-day meeting ends on Wednesday, but policymakers’ views are now more significant amid the US’ trade war with its key partners such as Canada, China and Europe.
The Bank of Canada had raised concerns about inflationary pressures and weaker growth stemming from trade uncertainty after its policy meeting last week.
President Donald Trump’s tariff hikes are expected to put inflationary pressures and drag down growth in Canada, Mexico and the U.S., the OECD forecast on Monday.
Canada’s commodity-heavy benchmark index, however, could benefit from higher oil and gold prices.
Oil prices rose more than 1% on Tuesday, supported by instability in the Middle East and China’s plans for more economic stimulus. [O/R]
Gold hit another record high above $3,000, with investors seeking the safe haven asset amid concerns about the trade war and conflict flaring in the Middle East. [GOL/]
In corporate news, Canadian insurer Manulife Financial on Monday named Steve Finch as the CEO and president of its Asia unit, effective from May 9.
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($1 = 1.4291 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Leroy Leo)
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