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 moved lower on Tuesday amid rising global bond yields.
Renewed hostilities in the Middle East lifted oil prices, prompting markets to reassess expectations for interest rate hikes by central banks.
US Fed Chair Warsh’s speech at Jackson Hole on Friday reiterated the central bank’s focus on fighting inflation, raising expectations for a rate hike this month.
The BoC is expected to leave rates unchanged on Wednesday.
Still, Canada’s 10-year yield reached a near two-week high.
The backdrop pressured financials and other credit-sensitive stocks and weighed on gold prices, pressuring mining shares.
Rallies in gold miners have been the main driver of the TSX’s recent monthly gains.