TSX futures gain as U.S. inflation data and bank earnings draw focus
S&P/TSX 60 index standard futures advanced by 4 points, or 0.2%, by 07:21 ET on Wednesday, as markets awaited the release of U.S. consumer price index data and assessed early results from major Wall Street banks. The Canadian benchmark had closed higher on Tuesday, with the S&P/TSX composite index rising 0.9% to finish at 35,983.98, supported by energy shares and a 1.4% gain in financial stocks.
S&P/TSX 60 index standard futures advanced by 4 points, or 0.2%, by 07:21 ET on Wednesday, as markets awaited the release of U.S. consumer price index data and assessed early results from major Wall Street banks. The Canadian benchmark had closed higher on Tuesday, with the S&P/TSX composite index rising 0.9% to finish at 35,983.98, supported by energy shares and a 1.4% gain in financial stocks.
U.S. futures followed a mixed path in the premarket session. By 07:32 ET, S&P 500 futures had increased by 13 points, or 0.2%, while Nasdaq futures declined by 30 points, or 0.1%. Dow Jones Industrial Average futures rose by 155 points, or 0.3%. Investors are focused on the monthly U.S. consumer price index, which is expected to show accelerated inflation due to rising energy costs.
Analysts forecast that overall consumer price growth for the twelve months to September will reach 3.6%, up from 3.4% previously. Month-over-month, the increase is projected at 0.6%, compared to 0.4% in the prior period. Core CPI, which excludes food and fuel, is expected to stand at 2.5% for the year, a slight increase from August's 2.4%, while the monthly rate is projected to slow to 0.2% from 0.3%. Deutsche Bank analysts noted in a report that the data is likely to be strong given the surge in energy prices during September, with motor fuel prices expected to rise by 0.6% over the month.
Banking sector earnings provided a mixed backdrop for the session. JPMorgan Chase shares slipped after the bank reported an unexpected decline in fixed-income trading revenue, while Goldman Sachs also traded lower following a miss in fixed-income estimates relative to expectations. Citigroup was the worst performer on the KBW Banks Index, dropping 5.6%. Bank of America posted a lower third-quarter profit due to $1.2 billion in provisions related to U.S. fines over failures to detect illicit activity, causing its shares to fall in premarket trading. Conversely, BlackRock reported higher profits driven by increased fees for managing client funds, and its stock rose before the opening bell.
Vital Knowledge analysts observed that third-quarter returns from large banks have generally met expectations, aside from softness in fixed-income trading, though they expressed concern that current conditions may be near their peak for the industry. Separately, Anthropic is planning to disclose its third-quarter financial results for the first time.
In other markets, ASML raised its annual outlook, citing strong demand for AI chips from clients locking in orders through 2030; its shares climbed more than 1% in European trading. Oil prices increased amid renewed geopolitical tensions in the Middle East, with Brent crude rising 0.5% to $106.25 a barrel and U.S. West Texas Intermediate crude gaining 1.9% to $95.88 per barrel by 07:40 ET. The United Kingdom Maritime Trade Operations authority reported that at least two ships were struck by missiles in the Strait of Hormuz on Tuesday, while Yemen's Houthis launched missiles at Saudi Arabia, hitting Aramco's headquarters in Dhahran.
Gold prices declined as investors weighed persistent inflation concerns against higher borrowing costs. Spot gold fell 0.6% to $4,138.73 an ounce by 06:06 ET, while gold futures dropped 0.4% to $4,160.34 an ounce. The metal has fallen for two consecutive sessions and has declined by approximately one-fifth since late February.