TSX futures rise as Fed rate hike expectations fade

TSX futures edged higher on Monday as investors scaled back expectations for a Federal Reserve interest rate hike in October. By 06:51 ET, the futures had climbed 4 points, or 0.2%. The TSX index itself rose 0.99% on Friday, ending a four-day losing streak at 35,502.65, its lowest close in 10 weeks. However, the global bond market selloff continued to cast a shadow over the index, which fell 0.8% over the week.

U.S. stock futures remained subdued, reflecting cautious sentiment amid bond market volatility and uncertainty around Fed policy. By 08:00 ET, the S&P 500 and Nasdaq futures showed little change, while the Dow Jones Industrial Average dipped 0.1%. Analysts at Deutsche Bank warned that the global bond-market selloff, particularly in France, would likely dominate market activity early in the week.

Oil prices saw mixed movements as Middle East exports and energy reserve releases helped ease inflation fears. Brent crude rose 0.2% to $102.43 a barrel, while WTI crude fell 1.1% to $90.06. Despite some stabilization, concerns persisted over potential disruptions in Middle East energy supplies due to geopolitical tensions.

Gold prices inched up after a steep weekly decline, supported by weaker U.S. payrolls data that reduced pressure on the Fed to raise rates further. By 08:13 ET, spot gold climbed 0.4% to $4,158.67 an ounce, while gold futures gained 0.6% to $4,186.50. Analysts noted that the weaker-than-expected jobs report provided some relief for the metal.