TSX Futures Fall as Oil Prices and Bond Yields Rise
Futures tracking Canada’s stock market fell on Wednesday amid elevated oil prices and rising bond yields. Crude oil climbed on persistent risks to Middle Eastern energy flows, raising inflation concerns, and reinforcing expectations of a prolonged higher-interest-rate environment. This worsened the impact that higher deficit spending in the US has on elevated domestic yields. Canadian sovereign bonds fell and further pressured credit-sensitive stocks. Markets are pricing in at least one 25-basis-point Bank of Canada rate hike by year-end. Meanwhile, gold prices declined, weighing on mining stocks.
Futures tracking Canada’s stock market fell on Wednesday amid elevated oil prices and rising bond yields. Crude oil climbed on persistent risks to Middle Eastern energy flows, raising inflation concerns, and reinforcing expectations of a prolonged higher-interest-rate environment. This worsened the impact that higher deficit spending in the US has on elevated domestic yields. Canadian sovereign bonds fell and further pressured credit-sensitive stocks.
Markets are pricing in at least one 25-basis-point Bank of Canada rate hike by year-end. Meanwhile, gold prices declined, weighing on mining stocks.