June futures on the S&P/TSX index were down 0.4% at 7:00 a.m. ET (11:00 GMT), mirroring their U.S. counterparts. [.N]
The Toronto Stock Exchange's S&P/TSX composite index ended 0.7% lower on Wednesday, logging its worst day since February 13. [.TO]
A hotter-than-expected inflation reading in the United States on Wednesday prompted investors to scale back expectations for interest rate cuts in June, triggering sharp declines on Wall Street.
Meanwhile, the Bank of Canada kept its key interest rate at a near 23-year high of 5% but said a cut in June was possible if a recent cooling trend in inflation continues.
The last crucial data before the decision showed on Friday that Canada's economy had shed a net 2,200 jobs in March while the unemployment rate increased to a 26-month high of 6.1%, suggesting a weakening labour market.
Money market participants are now pricing in just over 72% bets of a cut in July. [0#BOCWATCH].
On the commodities front, oil prices trended downwards as investors braced for a potential attack on Israeli interests by Iran. [O/R]
Gold prices steadied amid geopolitical and economic uncertainties while copper continued its uptrend on a softer dollar and firm market fundamentals. [GOL/] [MET/L]
Data-wise, a March reading of the producer prices index is due in the U.S. at 8:30 a.m. ET, alongside a weekly reading of jobless claims.
COMMODITIES AT 7:00 a.m. ET
Gold futures: $2,340.6; +0.2% [GOL/]
US crude: $85.63; -0.7% [O/R]
Brent crude: $89.94; -0.6% [O/R]
(Reporting by Purvi Agarwal in Bengaluru; Editing by Ravi Prakash Kumar)
