TSX futures slip on weak commodity prices; Fed decision awaited

Futures for Canada's main resource-heavy stock index edged lower on Monday, tracking weakness in commodity prices, while investors awaited U.S. Federal Reserve's interest rate decision due later in the week.

June futures on the S&P/TSX index (SXFc1) were down 0.1% at 7:39 a.m. ET (1139 GMT).

Economists and traders widely expect the U.S. central bank to halt its market-punishing interest rate hikes for the first time in over a year at its June meeting, prompting a rise in Wall Street index futures.

However, most banks expect the central bank to prepare markets for a hike in July.

Since Bank of Canada and Reserve Bank of Australia surprised markets with interest rate hikes last week, investors are cautiously waiting for the U.S. inflation data scheduled to be released on Tuesday to gauge the central bank's appetite for further rate hikes.

Oil prices and copper dropped on Monday amid concerns about poor demand from top commodities consumer China. Gold prices edged higher on a softer dollar.

Global miner Glencore

GLENoffered Teck Resources

TECKto buy its steelmaking coal business as a standalone unit, after the Canadian miner twice rebuffed its $22.5 billon offer to combine the two companies.

Canada's benchmark index

TSXrecorded its third straight day of losses on Friday after domestic data showed the economy unexpectedly lost jobs in May.

($1 = 1.3316 Canadian dollars)