On Wednesday, futures tracking Canada's main stock index witnessed a slight upward movement, mirroring the trends of their Wall Street counterparts. This came ahead of the U.S. Federal Reserve's crucial monetary policy decision later in the day. At 5:42 a.m. ET (1042 GMT), December futures on the S&P/TSX index showed a 0.2% increase. The U.S. central bank is widely anticipated to lower rates by 25 basis points at 2 p.m. EST. Market participants are closely observing the updated economic projections and Fed Chair Jerome Powell's press conference to gain insights into the pace of future rate cuts. Generally, U.S. rate cuts have a positive impact on commodity prices, especially precious and base metals, which could potentially boost Canada's resource-heavy stock market. However, since a rate cut is almost fully priced in, any hawkish stance could lead to a rise in the dollar and exert pressure on commodity prices. Oil prices edged up by about 0.6%, while gold prices remained relatively unchanged. [O/R][GOL/] On the contrary, the prices of most base metals declined as uncertainty surrounding demand, fueled by Chinese economic data, dampened market sentiment. [MET/L] On Tuesday, Canada's main share index reached a four-week low, which was affected by lower oil prices and political unrest in the country. Prime Minister Justin Trudeau's government faced chaos on Monday when his finance minister and deputy prime minister Chrystia Freeland resigned abruptly. Trudeau, who is trailing in polls, is facing calls from within his own caucus to step down. In corporate news, lithium miner Patriot Battery Metals managed to secure a C$69 million ($48 million) investment from automotive giant Volkswagen for a 9.9% stake. For more information on Canadian markets news, click on the following codes: TSX market report [.TO], Canadian dollar and bonds report [CAD/][CA/], Reuters global stocks poll for Canada, and Canadian markets directory. ($1 = 1.4324 Canadian dollars) (Reported by Ragini Mathur in Bengaluru; Edited by Mohammed Safi Shamsi)
