TSX Futures Rise Ahead of Fed Rate Decision Amid Oil Price Stability

Futures tied to Canada's main stock exchange, the TSX, edged higher on Wednesday ahead of a key decision from the Federal Reserve. The S&P/TSX 60 index standard futures contract rose by 10 points or 0.5%, as investors took pause in a recent oil price rally.

The move came after a decline in the S&P/TSX composite index, which dropped 0.3% to end at 35,582.07 on Tuesday. Analysts cited Reuters suggested that a climb in government bond yields had weighed on sentiment, similar to forces denting equities on Wall Street.

U.S. futures also rose, with the S&P 500 index up by 0.4% and Dow Jones Industrial Average rising 0.6%. The Federal Reserve is expected to raise interest rates by 25 basis points to a range of 3.75% to 4%, following job additions in August that far outpaced expectations.

Analysts at Citi noted that, historically, the Fed has never held rates with the market pricing of an increase this high. With markets broadly pricing in an increase, much of focus will likely be on Fed Chair Kevin Warsh's guidance for the coming months.