Stocks Set for Sharp Drop with Commodities


Equities in Canada’s largest centre were set to open lower on Wednesday on weakness in crude and gold prices, with investors awaiting economic growth data that influence the central bank’s rate-hike plans.

The TSX withered 323.22 points, or 1.6%, to close Tuesday at 19,512.90.

Futures were down 0.2% Wednesday.

On the economic front, Statistics Canada reported real gross domestic product rose 0.8% in the second quarter, driven by increased business investment in inventories, non-residential structures, machinery and equipment, and household spending on services and semi-durable goods.

ON BAYSTREET

The TSX Venture Exchange dropped eight points to finish Tuesday at 635.33.

ON WALLSTREET

Stock futures were slightly higher Wednesday after Wall Street’s losing streak stretched into its third day and endangered the market’s recent summer rebound.

Futures for the Dow Jones Industrials fell 41 points, or 0.1%, early Friday to 32,227.

Futures for the S&P 500 dipped 10.75 points, or 0.3%, to 4,190.25

Futures for the NASDAQ Composite slipped 46.5 points, or 0.4%, to 13,109.56.

Shares of Chewy tumbled more than 11% in the pre-market after the pet products retailer issued weak revenue guidance. HP Inc’s stock dipped 6% after the company missed revenue estimates.

Investors have sold off heavily since Friday after hawkish remarks from Federal Reserve Chair Jerome Powell. Most recently, New York Fed President John Williams called for “somewhat restrictive policy to slow demand.”

Wednesday’s also the last trading day of the month. The Dow and S&P 500 are both down more than 3% in August, while the NASDAQ has lost 4% in that time.

In Japan, the Nikkei 225 index lost 0.4% Wednesday, while in Hong Kong, the Hang Seng index acquired more than five points.

Oil prices dropped $2.53 to $89.11 U.S. a barrel.

Gold prices dulled $11.20 to $1,757.00 U.S. an ounce.

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