Dec 9 (Reuters) - Futures tied to Canada's main stock
index rose on Monday, helped by oil and metal prices, while
investors looked ahead to this week's Bank of Canada's interest
rate decision.
December futures on the S&P/TSX index were up 0.36%
at 6:01 a.m. ET (11:01 a.m. GMT).
The Bank of Canada is expected to cut the interest rate by
half a percentage point on Wednesday, marking its second
consecutive rate cut of such magnitude.
Bets for a hefty cut jumped after Friday's data showed a
sharp rise in the unemployment rate, with nearly 80% of
respondents in a Reuters poll predicting a 50 bps cut on Dec. 11
to 3.25%.
In commodities, oil prices jumped after China flagged its
first move toward a loosened monetary policy since 2010.
Gold prices climbed after China's central bank resumed gold
purchases after a six-month pause, while copper hit nearly a
one-month high after the second-largest economy vowed to ramp up
stimulus measures.
The composite index ended higher on Friday,
boosted by technology shares and anticipation of a large
interest rate cut from the BoC.
Across the border, market participants are eyeing
Wednesday's U.S. inflation data to gauge the pace of the Federal
Reserve's rate cuts.
The market bet on an 87% probability of a quarter-point cut
at next week's policy meeting, while expecting about an
89-basis-point cut by the end of next year.
Wall Street futures were subdued on Monday.
In corporate news, Swedish mining group Boliden
agreed to buy Lundin Mining's ( LUNMF ) Neves-Corvo mine in
Portugal and the Zinkgruvan mine in Sweden.
COMMODITIES
Gold: $2,657.47; +0.93%
US crude: $67.92; +1.07%
Brent crude: $71.77; +0.91%
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($1 = 1.4133 Canadian dollars)