Futures tracking Canada's main stock index fell on Wednesday, pointing to a seventh straight session in the red, as investors fretted about surging borrowing costs from aggressive policy tightening by central banks globally to curb inflation.
September futures on the S&P/TSX index were down 0.5% at 07:17 a.m. ET. They were tracking U.S. stock futures lower after a report that tech giant Apple was scrapping a plan to boost production of its flagship iPhone 14 on weak demand.
However, a swing in sentiment following the Bank of England's announcement of a temporary bond purchase program to stabilise the market helped cut some losses.
Dow e-minis were down 131 points, or 0.45% at 07:17 a.m. ET, while S&P 500 e-minis were down 25.25 points, or 0.69% and Nasdaq 100 e-minis were down 135.25 points, or 1.19%.
Stock markets have been roiled this year by central banks taking a strong stance against inflation.
The U.S. Federal Reserve delivered its third 75 basis points hike for the year last week and signaled more even at the risk of tipping the economy into recession. The Bank of Canada governor has also called for more hikes after a 75 bps move this month.
Canada's main stock index has lost 6.4% over the last six session, hitting 11-week lows. On Tuesday, it ended down 19.13 points, or 0.1%, at 18,307.91.
Gold prices hit their lowest since April 2020, indicating a possibly weak session for Canadian gold miners.
Stabilizing oil prices, however, were seen stemming any potential declines in energy companies.
Among stocks, cinema chain operator Cineplex has reached out to the lenders of Cineworld to revive a potential merger with the bankrupt rival's Regal Entertainment, the Wall Street Journal reported on Wednesday. (Reporting by Shashwat Chauhan in Bengaluru; Editing by Anil D'Silva)