Canada Stocks-TSX futures retreat as bond selloff deepens; Fed decision in focus
SPY•TSX futures fall as yields rise and oil spikes
Sept. 15 (Reuters) - Futures tracking Canada's blue-chip stocks retreated on Tuesday as surging oil prices and rising U.S. Treasury yields unnerved investors globally ahead of the Federal Reserve's interest rate decision on Wednesday.
September futures on the S&P/TSX index SXFcv1 were down 0.65% at 05:40 a.m. ET (09:40 AM GMT).
Bond yields, commodities and Fed expectations weigh on sentiment
- U.S. Treasury yields climbed above 5% to their highest level since 2007 as elevated oil prices deepened fears of a prolonged energy supply disruption.
- Brent crude futures rose nearly 2% following attacks on Saudi energy infrastructure on Monday, while Gulf Arab states also postponed their planned discussions with Iran.
- Traders in the money market are now pricing in more than a 90% chance of a Fed rate hike on Wednesday, according to CME Group's FedWatch tool, with the policy meeting starting later in the day.
- Spot gold
XAU=slipped 0.7%, hovering near more than a month low, and silver prices declined 0.6%, potentially putting mining stocks on track for a lower open after sharp losses in the previous session.GOL/ - Canada's government 10-year bond yields edged higher by more than 2 basis points on Tuesday, tracking a rise in U.S. Treasury yields.
- Prime Minister Mark Carney's summit with global investors this week will also be on investors' focus, as Canada pushes to attract large-scale investments in mining, energy, infrastructure and technology projects.
