TSX Futures Edge Up Ahead of Bank of Canada Rate Decision

The TSX futures edged up on Monday, recovering part of Friday's sharp selloff as investors prepared for the Bank of Canada's interest rate decision. The S&P/TSX Composite Index rose 0.2% to 2,147.10 points.

Investors are bracing for the central bank's announcement on Wednesday, where policymakers are expected to keep the benchmark policy rate at 2.25% for a seventh consecutive meeting. While trade friction between Washington and Ottawa threatens Canada's economic growth, core inflation remaining near the central bank's target provides flexibility.

Financial markets are pricing in nearly 75 basis points of Bank of Canada rate increases over the next twelve months. A firm labor backdrop argues against an immediate rate cut, with Canada's August labor force survey expected to show a gain of 15,000 jobs and an unemployment rate of 6.4%.

The spike in oil prices following military escalation in the Middle East sent global crude benchmarks jumping nearly 3% past $90 a barrel, providing support for Toronto-listed energy producers.