TSX Futures Drop Amid Rising Yields and Oil Prices Ahead of Fed Meeting
Futures linked to Canada's main stock index dropped on Tuesday as government bond yields and oil prices rose, casting doubt on investor confidence ahead of a key Federal Reserve monetary policy meeting.
The S&P/TSX 60 index standard futures contract fell by 3 points or 0.2% by 07:05 ET (11:05 GMT), while the S&P/TSX composite index inched up marginally by 0.01% on Monday to finish at 35,702.53.
The rise in government bond yields and oil prices was attributed to a potential hike in interest rates, with investors now pricing in about a 92% chance of a quarter-point increase compared to 59% a week ago, CME data showed.
Gold prices sank on growing bets that the Fed will tighten policy this week, with gold and copper prices dropping. However, energy stocks rebounded following a sharp increase in oil prices after Saudi Arabia's east-west pipeline was closed.