Canadian equity futures edge higher after subdued August GDP data

  • Canadian equity futures rose after August economic data reinforced rate-hike expectations.
  • 0.2% was the August increase in real GDP, while July GDP was essentially unchanged.
  • Oil prices declined as US and Iranian officials held separate mediated discussions.

Canadian equity futures moved higher on Tuesday after advance data showed real GDP increased 0.2% in August, reinforcing expectations that the Bank of Canada is unlikely to raise interest rates this year. Growth in mining and quarrying and retail trade was partly offset by lower oil and gas extraction, while GDP was essentially unchanged in July. Oil prices declined as US and Iranian officials held separate discussions with mediators, easing pressure on credit-sensitive stocks affected by inflation concerns. Higher gold prices provided additional support for mining shares.

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