Jan 15 (Reuters) – Futures for Canada’s main stock index dipped on Monday, with low trading volumes, as investors awaited the domestic inflation report later in the week amid renewed optimism about a potential interest rate cut by the U.S. Federal Reserve in March.
March futures on the S&P/TSX index were down 0.2% at 6:54 a.m. ET (1154 GMT).
Canada stocks ended the week at their highest level in 21 months on Friday, boosted by gains in technology shares, bullish technical bets and optimism sparked by U.S. data suggesting the possibility of early Fed rate cuts.
Expectations for a Fed rate cut of at least 25 basis points in March currently stand at 73%, according to CME’s FedWatch Tool.
Volumes were low as U.S. markets were closed on Monday on account of Martin Luther King Jr. Day.
Investors will closely track Canada’s inflation report for December this week to strengthen bets on rate cuts by the Bank of Canada, which is due to hold an…
