TSX futures rise on final trading day of 2024

(Reuters) – Futures tracking Canada’s main stock index rose in light trading on Tuesday, the final trading session of 2024, boosted by rising commodity prices.

March futures on the S&P/TSX index were up 0.3% at 6:56 a.m. ET (11:56 GMT).

Wall Street futures also edged higher at the end of a rocky December as investors grappled with the prospect of fewer U.S. interest rate cuts next year. [.N]

Canada’s main share index is set for a 4% drop in December, its worst month since May 2023, partly due to the U.S. Federal Reserve’s hawkish policy announcement and domestic political uncertainty.

However, policy easing from major central banks that spurred a big wave of buying of stocks put the TSX index on track for a near 18% rise this year, its best annual performance since 2021.

As the year concludes, investors have scaled back their expectations for significant rate cuts by the Fed in 2025 and are preparing for potential policy shifts with Donald Trump’s return to the White House.

Most markets across the globe will be closed on Wednesday on account of the New Year holiday.

In commodities, oil prices rose following data indicating an expansion in China’s manufacturing activity in December. [O/R]

Gold prices also climbed on the last trading day of a stellar year for the metal, fueled by strong central bank purchases, geopolitical tensions and monetary policy easing by major global banks. [GOL/]

Looking ahead, investors will focus on upcoming monthly employment data from Canada and the United States, which will offer insights into the monetary policy direction in both the countries.

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(Reporting by Ragini Mathur in Bengaluru; Editing by Shreya Biswas)