(Reuters) - Futures linked to Canada's main stock index declined on Wednesday, dragged down by falling crude prices, a day after the TSX closed at a record high.
The S&P/TSX 60 futures were down 0.16% by 06:27 a.m. ET (1027 GMT). The benchmark index hit a record closing high in the previous session after the country's annual inflation rate cooled a tick more than expected to 2.7% in June.
Wall Street futures were also down as investors abandoned megacap technology and semiconductor shares for small-cap stocks. [.N]
Oil prices inched lower, a day after benchmark Brent hit a one-month low due to weaker demand concerns from China, but a decline in U.S. oil stockpiles kept losses in check. [O/R]
Gold prices hit an all-time high, aided by soaring expectations the U.S. Federal Reserve will cut interest rates in September. [GOL/]
Copper prices slightly changed as supply concerns countered the fragile demand from China. [MET/L]
With the Bank of Canada set to host its monetary policy meeting next week, market bets for another rate cut are high, especially after cooler-than-expected inflation data on Tuesday.
Analysts have said Canada's GDP data for April and the unexpected rise in unemployment in June points to a weaker economy that needs more rate cuts to prevent a recession.
Across the border, the likelihood for a September rate cut is also strengthening, after Federal Reserve Chair Jerome Powell acknowledged the downward trajectory of inflation in his recent testimony to the U.S Congress.
Markets will now focus on U.S. building permits, housing starts and industrial production dataset for June, scheduled later in the day.
In corporate news, storage company Storagevault Canada agreed to acquire two adjacent properties in southern Ontario from two arm's length vendors for $71.5 million.
COMMODITIES
Gold futures: $2475.82; +0.28% [GOL/]
US crude: $80.76; 0.0% [O/R]
Brent crude: $83.64; -0.1% [O/R]
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($1 = 1.3659 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Shreya Biswas)
