TSX Futures Gain on Gold Rebound
Futures tracking the TSX rose on Thursday as gold prices jumped, lending support to mining stocks. Gold rebounded as the recent rally in oil prices lost steam, easing inflationary pressures. The moves followed reports that Saudi Arabia aims to restore around half of its East-West pipeline capacity within days and return it to full operation within six weeks. The pause in the oil rally also supported credit-sensitive stocks, as easing inflationary pressures helped lower bond yields. Meanwhile, the US Federal Reserve raised interest rates and FOMC members projected another rate hike could be warranted this year in their SEP. Fed Chair Kevin Warsh said inflation remains elevated, while data released last week showed that core US inflation rose more than anticipated in August.
Futures tracking the TSX rose on Thursday as gold prices jumped, lending support to mining stocks. Gold rebounded as the recent rally in oil prices lost steam, easing inflationary pressures. The moves followed reports that Saudi Arabia aims to restore around half of its East-West pipeline capacity within days and return it to full operation within six weeks. The pause in the oil rally also supported credit-sensitive stocks, as easing inflationary pressures helped lower bond yields.
Meanwhile, the US Federal Reserve raised interest rates and FOMC members projected another rate hike could be warranted this year in their SEP. Fed Chair Kevin Warsh said inflation remains elevated, while data released last week showed that core US inflation rose more than anticipated in August.