Canada futures fall as higher yields weigh on sentiment
SPY•December futures on Canada's S&P/TSX index were down 0.52% after briefly touching a three-month low, as rising bond yields and oil prices heightened inflation and interest-rate concerns.
1. Futures touch three-month low
December futures on the S&P/TSX index fell 0.52% at 5:19 a.m. ET after reaching their lowest level since July 9. The index had its steepest one-day decline since June 5 on Wednesday.
2. Yields and oil rise
The U.S. 10-year Treasury yield edged up to 5.3327%, after retreating slightly from a multi-decade high reached Wednesday. Oil prices rose more than 3% on supply concerns tied to the Middle East and fresh attacks on shipping in the Gulf and Strait of Hormuz. Higher energy prices reinforced inflation fears and expectations that central banks would keep borrowing costs elevated.
3. Rate expectations and companies
Markets were pricing in at least one quarter-point Bank of Canada rate hike before year-end and one 25-basis-point U.S. Federal Reserve hike before the end of 2026. Gold steadied after falling to a two-month low on Wednesday, while the materials sector fell to a three-month low. Richelieu Hardware reported higher third-quarter revenue.
