Canada Stocks-TSX Futures Dip as Rising Yields, Falling Gold Weigh
EWC•TSX futures fall as yields rise and gold weakens
Sept. 1 (Reuters) - Futures tracking Canada's blue-chip stocks fell on Tuesday as rising bond yields globally and declines in precious metal prices dampened risk appetite, while an uptick in oil prices kept broader declines in check.
September futures on the S&P/TSX index SXFcv1 were down 0.5% at 05:56 a.m. ET (0956 GMT).
Oil gains limit losses; investors watch trade relations
- On the flip side, the 1.9% gain in oil prices kept overall declines in check. O/R
- The benchmark TSX marked its fifth month in positive territory on Monday, as miners posted a stellar rally in August on the back of rising metal prices.
- Investors will also monitor developments in U.S.-Canada trade relations.
Higher bond yields and weaker metals pressure resource-heavy market
- Global bond yields hit major highs as renewed hostilities in the Middle East lifted oil prices, prompting markets to reassess expectations of interest rate hikes by central banks.
- The 10-year U.S. Treasury yield US10YT=RR, a benchmark for prices across asset classes, rose to 4.788% — its highest since early 2025.
- The yield on the Canadian 10-year note CA10YT=RR was at 3.739%, an over one-week high.
- In a double whammy for resource-heavy Canadian markets, prices of gold and silver dropped 1.7% and 2.8%, respectively. GOL/
- Elevated oil prices stemming from the Iran conflict are affecting the global economy, with many countries already raising interest rates to combat inflation.
