Futures for Canada's main stock index, the S&P/TSX, edged higher on Friday as rising metals prices boosted sentiment. December futures on the index rose 0.4% by 6:45 a.m. ET, driven by gains in the materials sector, which includes gold and silver. Bank of Canada Governor Tiff Macklem warned that persistent energy-price pressures could complicate future interest rate decisions, though no hike is expected at the next meeting on October 28.
The energy sector, which has surged over 58% this year, remained in focus as Brent crude futures dipped 0.12% but stayed above $100 a barrel. Oil prices were set for weekly gains despite weaker diesel margins, supported by Middle East supply concerns and a larger-than-expected US crude draw. Meanwhile, Canadian home sales continued to decline in September, reflecting the impact of higher mortgage rates and expectations of a rate hike.
Global markets stabilized after a tech-led selloff the previous session, with receding bond yields providing some support. Investors weighed hotter-than-expected US inflation data and concerns over AI-related debt financing. The TSX closed at a three-week high on Thursday and was on track for gains in the holiday-shortened week.