TSX futures slip as oil, yields fuel rate-hike fears ahead of Fed minutes
EWC•EWC•EWC•EWC•December futures tracking the S&P/TSX fell 0.41% as oil prices rose above $100 a barrel and bond yields climbed. Investors awaited minutes from the Fed’s September meeting, with traders pricing in an 86% chance of a quarter-point rate hike in December.
Futures tracking Canada’s blue-chip stocks fell on Wednesday as elevated oil prices and climbing yields made investors risk averse. December S&P/TSX futures were down 0.41% at 5:59 a.m. ET.
Brent crude rose above $100 a barrel, while the 30-year U.S. Treasury yield reached its highest level since 2002. Markets awaited the Federal Reserve’s September meeting minutes; traders expected rates to remain unchanged in October 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 on prices. The S&P/TSX rose to an 11-day high on Tuesday, led by utilities and metal-mining shares.
