TSX Futures Gain as Oil Prices Dip on Supply Relief
Futures tied to Canada’s stock exchange climbed on Monday as oil prices pulled back, easing concerns over inflation. The retreat in oil came as flows through the Strait of Hormuz resumed and the G7 announced another emergency stockpile release, both factors cooling energy prices.
The decline in oil prices provided relief to credit-sensitive stocks, which had faced pressure from inflation fears tied to rising energy costs. A weaker-than-expected US jobs report on Friday also lowered expectations of an immediate rate hike by the Federal Reserve, further supporting these equities.
While the likelihood of an October rate hike by the Bank of Canada has diminished, investors still anticipate at least one rate increase by the end of 2026. Gold prices rose, boosting mining shares, while Suncor agreed to sell three offshore oil assets to Ithaca. Meanwhile, Cenovus announced plans to acquire Athabasca Oil in a cash-and-stock deal.