Canada stocks-TSX futures slip as oil, yields fuel rate-hike fears ahead of Fed minutes
TLT•December futures for Canada's S&P/TSX index fell 0.41% as elevated oil prices and climbing yields made investors risk averse ahead of the U.S. Federal Reserve's September meeting minutes. Traders priced in an 86% chance of a quarter-point Fed rate hike in December, while Canadian investors anticipated at least one 25-basis-point Bank of Canada hike by year-end.
1. TSX futures fall
December futures for Canada's S&P/TSX index were down 0.41% at 5:59 a.m. ET on Wednesday. Elevated oil prices and climbing yields made investors risk averse as markets awaited the Federal Reserve's September meeting minutes.
2. Rate expectations rise
Brent crude futures climbed above $100 a barrel, while the 30-year U.S. Treasury yield reached its highest level since 2002. Traders expected the Fed to hold rates steady at its October meeting and priced in an 86% chance of a quarter-point hike in December; Canadian investors were pricing in at least one 25-basis-point Bank of Canada hike by year-end. Gold and silver fell more than 1% as a stronger U.S. dollar and higher yields weighed.
3. Prior session gains
Canada's main stock index rose to an 11-day high on Tuesday, led by utilities and metal mining shares.
