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Futures Plunge Day After BoC Rate

Published 2024-12-12, 03:49 a/m
© Reuters.  Futures Plunge Day After BoC Rate
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Baystreet.ca - Futures tied to Canada's main stock index fell on Thursday after a rally in the previous session following the Bank of Canada's outsized interest rate cut.

The TSX jumped 153.37 points to close Wednesday at 25,657.70.

December futures sank 0.3% Thursday.

The Canadian dollar dished off 0.03 cents to 70.64 cents U.S.

The central bank slashed its policy rates by 50 basis points on Wednesday to help boost the country's slower economic growth.

However, Governor Tiff Macklem emphasized further reductions would be more gradual and warned that potential new tariffs under U.S. President-elect Donald Trump represented "a major new uncertainty."

In corporate news, non-paper containers & packaging firm Transcontinental (TSX:TCLa) missed fourth-quarter revenue estimates on Wednesday.

In economic news, building permits decreased by $399.1 million (-3.1%) to $12.6 billion in October.

ON BAYSTREET

The TSX Venture Exchange eked up 3.93 points Wednesday to 616.60.

ON WALLSTREET

U.S. stock futures slid Thursday after the tech-heavy NASDAQ Composite finished above the 20,000 level for the first time.

Futures for the Dow Jones Industrial average ditched 74 points, or 0.2%, to 44,148.

Futures for the S&P 500 faltered 11.75 points, or 0.2%, to 6,081

Futures for the tech-heavy NASDAQ docked 72 points, or 0.3%, to 21,721.50.

Software (ETR:SOWGn) giant Adobe (NASDAQ:ADBE) declined more than 11% in the premarket following the company’s weaker-than-expected revenue guidance for the current quarter.

On the earnings front, chip giant Broadcom (NASDAQ:AVGO), home furnishings company RH (NYSE:RH) and retailer Costco Wholesale (NASDAQ:COST) are due to post results after the close.

During Wednesday’s session, the NASDAQ gained around 1.8%, topping the 20,000 threshold and posting an all-time high and a closing record.

The broad market S&P 500 added 0.8%. Meanwhile, the 30-stock Dow underperformed, falling around 99 points, or 0.2%.

Additional inflation data awaits on Thursday morning, with the release of the producer price index report for November. Economists polled by Dow Jones see a 0.2% increase on a monthly basis. Weekly jobless claims are also due.

In Japan, the Nikkei 225 climbed 1.2% Thursday, while in Hong Kong, the Hang Seng also increased 1.2%

Oil prices improved 14 cents to $70.43 U.S. a barrel.

Gold prices sank $13.90 to $2,742.80 U.S. an ounce.

This content was originally published on Baystreet.ca

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