(Reuters) - Futures for Canada's main stock index dipped on Wednesday, ahead of the U.S. Federal Reserve's interest rate decision later in the day, while investors awaited more domestic economic data to gauge the strength of the Canadian economy.
June futures on the S&P/TSX index were down 0.3% at 6:39 a.m. ET (10:39 GMT).
All eyes will be on the U.S. Fed's decision, due at 2 p.m. ET, where the central bank is widely expected to hold the interest rates steady. Money markets now see only one 25 basis points rate cut in 2024, according to CME's Fedwatch Tool.
"Central bankers have made it very clear that interest rates will not be lowered until there is substantial evidence that inflation is trending lower, and robust recent economic data has failed to provide it," said Richard Flynn, managing director at Charles Schwab UK.
S&P Global's manufacturing data for Canada will also be on investors' radar during the opening bell.
Energy shares will be in focus as oil prices fell more than 1% on hopes of a ceasefire agreement in the Middle East and on rising crude inventories and production in top consumer the United States. [O/R]
The materials sector may witness an impact as most base metals fell on a firmer dollar which made greenback-priced commodities more expensive for buyers holding other currencies. [MET/L]
Across the border, U.S. stock index futures slid as downbeat results dragged chip stocks and markets exercised caution ahead of the Fed decision.
The Toronto Stock Exchange's S&P/TSX composite index ended 1.4% lower on Tuesday, logging their worst day in 11 weeks. For April, the index was down 2%, its first monthly decline since October. [.TO]
COMMODITIES AT 6:39 a.m. ET
Gold futures: $2,302.1; flat [GOL/]
US crude: $80.77; -1.4% [O/R]
Brent crude: $85.25; -1.3% [O/R]
($1= C$1.3769)
(Reporting by Shubham Batra in Bengaluru; Editing by Vijay Kishore)
