Canada’s main stock index futures followed global trends downward on prolonged US debt deal talks. Subdued earnings from BMO and Scotiabank also weighed on sentiment. The tech sector was the lone gainer.
Both sides on the US debt negotiations appear to be “far apart” on negotiations and Treasury Secretary Janet Yellen had warned lawmakers that a potential default in early June is “highly likely.” Meanwhile, minutes from the Federal Reserve’s meeting earlier this month showed that some members believe there is more work to do to constrain inflation, though several think enough has been done.
The Canadian dollar traded for 73.58 cents US, compared to 74.03 cents US on Tuesday.
US crude futures traded $0.93 higher at $73.84 a barrel, and the Brent contract added $1.18 to $78.02 a barrel.
The price of gold was down US$14.69 to US$ 1,960.55.
In world markets, the Nikkei was down 275.09 points to 30,682.68, the Hang Seng was down 315.32 points to 19,115.93, the FTSE was down 135.85 points to 7,627.10, and the DAX was down 310.73 points to 15,842.13.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, click here.