Canadian markets are expected to open lower today as oil and metal prices retreat and investors await minutes from the latest U.S. Federal Reserve meeting. Lower oil prices and slowing growth in China are weighing on commodity-linked stocks in Canada.
The loonie is also losing ground as oil prices slip. The Fed minutes later today could provide more clues on future interest rate hikes, which will impact the volatility of financial markets.
Some Canadian companies are still making moves. Brookfield's insurance arm is acquiring American Equity Investment Life Holding for $4.3 billion, expanding Brookfield's insurance business. Meanwhile, Teck Resources shares are rising in premarket trading after China announced export restrictions on some rare earth metals used in computer chips, which could support prices of those commodities.
Overall, resource-linked stocks will continue tracking movements in commodity prices, while investors gauge the Federal Reserve's stance on monetary policy tightening to fight inflation. A resolution of recent volatility may depend on signs that inflation is slowing and interest rate hikes becoming less aggressive.
