Canada stocks slip as oil, yields fuel rate hike fears ahead of Fed minutes
Futures tracking Canada's blue-chip stocks fell on Wednesday as elevated oil prices and climbing yields made investors risk averse, while markets awaited the minutes of the US Federal Reserve's September meeting.
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m. S. Federal Reserve's September meeting minutes later in the day. Brent crude futures rose above $100 a barrel, adding to inflation worries and reinforcing expectations for a prolonged higher-interest-rate backdrop.
S. benchmark 10-year Treasury yield edged higher, while the 30-year Treasury yield reached its highest level since 2002. Traders expect the Federal Reserve to leave rates unchanged at its October meeting and are pricing in an 86% chance of a quarter-point hike in December, In Canada, investors are pricing in at least one 25 basis point hike by the Bank of Canada by year-end, according to data. S.
dollar and higher yields pressured prices, further hurting risk appetite in the resource-heavy market. Canada's main stock index climbed to an 11-day high on Tuesday, led by utilities and metal mining shares.