Canadian stock index futures edged higher on Monday, tracking gains in U.S. markets, as investors looked ahead to a week packed with geopolitical and economic developments, including high-level U.S.-Russia talks, trade negotiations, and pivotal inflation figures.
By 5:34 a.m. ET (0934 GMT), S&P/TSX index futures were up 0.17%, building on the Toronto Stock Exchange’s strongest weekly performance in nearly a year. Last week’s rally was fueled by solid corporate earnings, driving the S&P/TSX composite index to its largest weekly gain since mid-2023.
The spotlight this week is on the August 15 meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska, aimed at negotiating a possible resolution to the war in Ukraine. Markets are also closely watching the Tuesday deadline for U.S. tariffs on China, with expectations leaning toward another extension to avoid triple-digit percentage levies.
Tuesday’s release of July U.S. consumer price index data will be another key market driver. The report could reveal whether U.S. import tariffs are adding to inflationary pressures—potentially influencing the Federal Reserve’s decision on whether to cut interest rates in September.
Domestically, Canada faces a relatively quiet week on the economic calendar. June wholesale trade and manufacturing sales data, due Friday, will be the main releases. On Wednesday, the Bank of Canada will publish its Governing Council deliberations from its latest policy meeting, when it kept interest rates unchanged but signaled possible cuts if economic growth weakens further and inflation stays subdued.
Commodity markets opened the week under pressure. Gold prices slipped more than 1% ahead of the U.S.-Russia meeting, putting Canada’s materials index at risk of declines. Oil prices also extended last week’s losses, which totaled more than 4%.
Main Image: The Economic Times
