Toronto: Canada’s main stock index futures remained relatively unchanged on Friday, rising just 0.03%, as escalating trade tensions between the U.S. and Canada created market uncertainty. This followed U.S. President Donald Trump’s abrupt termination of trade talks with Canada, citing a controversial advertisement involving former President Ronald Reagan and criticism over tariffs. The U.S. had previously imposed tariffs on Canadian steel, aluminum, and automobiles, and the two nations had been negotiating a sectoral deal.
Investors were also focused on upcoming U.S. inflation data, particularly the core Consumer Price Index, anticipated to remain at 3.1%, which could influence the Federal Reserve’s monetary policy decision in the upcoming week. The ongoing U.S. government shutdown, now entering its 24th day, has halted the release of many key economic reports, further elevating the CPI data's importance.
Domestically, the Bank of Canada is expected to announce its interest rate decision on October 29, with markets projecting an 88% likelihood of a 25-basis-point rate cut. On the corporate front, Air Canada announced a reduction of 400 management jobs, about 1% of its workforce. Meanwhile, oil prices were stable and gold fell over 1% due to easing U.S.-China trade tensions.