TSX Edges Up as Markets Await US Inflation Data

Canada's TSX futures edged up by 0.1% on Wednesday morning as investors waited for key data releases in the US.

The main event was the release of the US Personal Consumption Expenditures (PCE) inflation report and an update on US GDP, both expected later in the day.

PCE is the preferred inflation gauge of the Federal Reserve, so a stronger-than-expected reading could shift expectations toward higher interest rates, which would typically lead to higher government bond yields.

Higher yields can be detrimental to companies with earnings further out in the future, such as Canadian REITs and utilities, whose steady payouts compete with safer bond income.