TSX Futures Edge Up Ahead of Bank of Canada Rate Decision

Canada's TSX futures edged up on Monday as investors prepared for the Bank of Canada's interest rate decision this week. The modest bounce follows a sharp selloff last Friday, when energy and materials shares dragged Bay Street lower.

The S&P/TSX Composite Index futures rose 0.2% to 2,147.10 points on Monday. Implied volatility also crept higher, with the S&P/TSX 60 VIX increasing by 0.91% to 13.24.

The Bank of Canada is expected to keep its benchmark policy rate at 2.25% for a seventh consecutive meeting on Wednesday. This decision comes amidst worsening trade tensions between Washington and Ottawa, which could impact Canada's economic growth.

However, core inflation remaining near the central bank's 2% target provides policymakers with flexibility to stand pat. Financial markets are pricing in nearly 75 basis points of Bank of Canada rate increases over the next twelve months.

The spike in oil prices due to a military escalation in the Middle East also provided support for energy heavyweights on the TSX, which rose by nearly 3% past $90 a barrel.