TSX futures steady as oil prices recover, Fed worries cap gains

Reuters

Published Dec 15, 2022 07:12AM ET

(Reuters) - Futures for Canada's resources-heavy main stock index rose on Thursday as oil prices recouped early losses, while a sharp drop in gold kept gains in check after hawkish Federal Reserve commentary.

Futures on the S&P/TSX index were up 0.1% at 6:34 a.m. ET (1134 GMT), while their U.S. peers fell after the Fed on Wednesday raised interest rates as expected but said it would keep hiking them further. [.N]

Fed Chair Jerome Powell on Wednesday said interest rate hikes would persist next year even as the U.S. economy faces the threat of a recession, sparking a selloff on Wall Street and also knocking down Canada shares.

Investors will also be on the lookout for interest rate decisions by the European Central Bank and the Bank of England later in the day, with both central banks expected to hike lending rates by half a percentage point.

In a bright spot, oil prices steadied after early declines as the dollar firmed, while likely increases in interest rates by central banks also heightened demand concerns. [O/R]

Gold prices lost more than 1% as the greenback strengthened. [GOL/]

On the docket, domestic housing starts data is due at 8:15 a.m. ET.