TSX futures flat as investors cut rate hike expectations
EWC•TSX futures were little changed after a soft U.S. jobs report reduced expectations for an imminent Federal Reserve rate hike; traders saw a 20% chance of an October increase, down from nearly 71% a week earlier.
1. Rate expectations ease
December futures on the S&P/TSX index were flat at 6:26 a.m. ET on Monday. The benchmark index gained nearly 1% on Friday after a softer-than-expected U.S. payrolls report reduced the likelihood of a Federal Reserve rate hike later this month. Odds of an October Bank of Canada hike also receded, though investors still expected at least one rate increase before the end of 2026.
2. Energy and company news
Gold prices climbed, while oil prices were steady as elevated energy prices stoked inflation worries and pushed up borrowing costs. Higher crude prices have helped lift the energy sector, the TSX’s best-performing sector this year, and helped the index gain nearly 12% in 2026. Suncor Energy agreed to sell interests in three offshore oil assets to Ithaca Energy for C$1.2 billion in upfront cash, while Cenovus Energy agreed to acquire Athabasca Oil in a transaction valuing the producer at an implied enterprise value of C$5.7 billion.
