TSX futures up marginally

Investing.com - Canada’s major stock index's future was raised Wednesday after closing lower on Tuesday. Investors are anticipating a key U.S. Fed rate decision today. While many don't expect a rate cut, understanding the Fed's outlook on the economy in the midst of a trade war between the U.S. and Canada remains crucial.

By the 8:30 ET, S&P/TSX 60 index futures were up 0.3%, after decreasing 5.3 points or 0.4% on Tuesday.

The S&P/TSX Composite’s S&P/TSX composite index fell 79 points or 0.3%, after advancing by 231.71 points or 0.9% on Monday, extending a recovery from a four-and-a-half-month low last Thursday.

Statistics Canada offered February’s CPI report on Tuesday, in which CPI jumped 2.6% in February, surpassing analyst expectations of a 2.1% increase.

However, a forecast from the OECD flagged that Trump’s plans to hike levies will hit growth in Canada, Mexico, and the United States while also pushing up inflationary pressures.

Analysts at Capital Economics argued that the outlook for Canadian financial markets widely depends on the reaction by the Bank of Canada to any fallout from the U.S. tariffs. Last week, the BoC slashed interest rates by 25 basis points and raised worries over inflation and weaker growth from the duties.

U.S. stock futures slightly higher

U.S. stocks futures were minimally raised on Wednesday, after slipping til closing on Tuesday, amid cautious trading ahead of this week’s Federal Reserve meeting.

As of 8:45 ET, Dow Jones Futures were up 19 points or 0.05%, S&P 500 Futures were up 10.5 points or 0.18%, and Nasdaq 100 Futures were up 58.25 or 0.3%.

On Tuesday, the Dow Jones Industrial Average had fallen by 260.3 points, or 0.6%, the S&P 500 edged down by 60.5 points or 1.1%, and the NASDAQ Composite dropped 304.6 points, or 1.7%.

"[T]echnical conditions continue to favor bulls in the immediate term, although this source of upside pressure is being exhausted," analysts at Vital Knowledge said in a note to clients.

Oil flat

Oil prices were mostly flat on Wednesday, after falling on Tuesday, as investors weighed the potential of Russian oil in global markets.

As of 8:45 ET, Crude Oil WTI Futures showed no movement after Tuesday's losses, while Brent Oil Futures were up 0.03% after yesterday's drop.

The major news of the day was that Russia agreed to U.S. President Donald Trump’s proposal that Moscow and Kyiv temporarily stop attacking each other’s energy infrastructure. This move could potentially allow Russian oil to enter global markets.

Israel launched extensive airstrikes across the Gaza Strip on Tuesday, marking the most significant escalation since the January ceasefire, with Prime Minister Benjamin Netanyahu authorizing the operations following stalled negotiations to extend the ceasefire and unresolved hostage situations.

Gold notches record high, continues rise

Gold prices continued rising on Wednesday after hitting another record high above $3,000 on Tuesday as heightened geopolitical ructions in the Middle East -- particularly the breaching of the Israel-Hamas ceasefire -- fueled safe haven demand.

By 8:50 ET, Gold Futures were up 0.2% to $3,047.10.