TSX Futures Slip on Rate Hike Bets and US-Canada Trade War
Futures tracking Canada’s stock market edged lower on Tuesday amid expectations of a hawkish Bank of Canada and concerns over trade tensions with the US. Traders increased their bets on an interest rate hike next week after September’s inflation data came in above the BoC’s upper target limit. The prospect of tighter monetary policy, combined with elevated energy prices amid escalating Middle East tensions, weighed on sentiment toward credit-sensitive stocks, including major banks. A BoC survey released on Monday also showed that Canadian firms’ outlook had deteriorated following the collapse of trade talks with the US. Meanwhile, lower gold prices put further pressure on mining stocks.
Futures tracking Canada’s stock market edged lower on Tuesday amid expectations of a hawkish Bank of Canada and concerns over trade tensions with the US. Traders increased their bets on an interest rate hike next week after September’s inflation data came in above the BoC’s upper target limit. The prospect of tighter monetary policy, combined with elevated energy prices amid escalating Middle East tensions, weighed on sentiment toward credit-sensitive stocks, including major banks. A BoC survey released on Monday also showed that Canadian firms’ outlook had deteriorated following the collapse of trade talks with the US.
Meanwhile, lower gold prices put further pressure on mining stocks.