Canada Stocks-TSX futures steady ahead of Bank of Canada's rate decision
EWC•TSX futures muted ahead of rate decision
Sept. 2 (Reuters) - Futures tracking Canada's blue-chip stocks were muted on Wednesday, as markets grappled with fresh strikes in the Iran war and rising yields ahead of the Bank of Canada's interest-rate decision.
September futures on the S&P/TSX index SXFcv1 were down 0.13% at 06:15 a.m. ET (1015 GMT).
Bank of Canada decision and economic data in focus
- Against this backdrop, comments from policymakers at the Bank of Canada will be closely watched following their interest-rate decision, which is widely expected to be a hold.
- Employment reports in the U.S. and Canada, due later this week, could largely shape monetary policy expectations going forward, especially after U.S. Federal Reserve Chair Kevin Warsh reiterated his stance on fighting inflation.
- On Wednesday, prices of gold and silver also slipped, in another blow to commodity-heavy Canadian markets.
- Meanwhile, Prime Minister Mark Carney's Liberal Party won three special elections on Tuesday, maintaining his slim majority in Parliament at a time of worsening U.S. trade ties.
Oil, yields and inflation worries weigh on sentiment
- Iran and its Arab neighbours were plunged back into war as U.S. forces hit Iran's southern coast and Iran struck at American bases across the region.
- However, oil prices were little changed after hitting one-month highs earlier in the session. O/R
- Elevated oil prices stemming from the conflict are driving inflation worries, which, coupled with concerns over ballooning government debt, have pushed bond yields to multi-month highs.
