TSX futures fall as global bond yields climb
Futures tracking Canadian stocks fell Tuesday as global bond yields rose. Renewed Middle East hostilities lifted oil, while US Fed Chair Warsh’s Jackson Hole remarks kept focus on inflation, shifting expectations for a hike this month.
Futures tracking Canadian stocks fell on Tuesday as global bond yields climbed. Renewed hostilities in the Middle East lifted oil prices and led markets to reassess expectations for central bank rate hikes. US Fed Chair Warsh said in his Jackson Hole speech on Friday that the central bank remains focused on fighting inflation, which has increased expectations for a rate hike this month. The BoC is expected to leave rates unchanged on Wednesday.
Canada’s 10-year yield also reached a near two-week high. The backdrop pressured financials and other credit-sensitive stocks and weighed on gold prices, hitting mining shares. Rallies in gold miners have been the main driver of the TSX’s recent monthly gains.