TSX Futures Rise on Softer US Inflation Data

The TSX futures rose on Wednesday as softer US inflation data alleviated concerns about further Federal Reserve rate hikes. This development provided some relief to markets that had been fretting over rising global bond yields and intensifying trade tensions between Washington and Ottawa.

The S&P/TSX Composite Index climbed 64.25 points, or 0.18%, to 35,524.52, after data from the Bureau of Economic Analysis showed the US core personal consumption expenditures price index rose at a slower-than-anticipated rate in August.

With this inflation measure climbing only 0.2% month-on-month, compared to expectations for growth of 0.3%, it remains to be seen whether more interest rate hikes are needed to put a lid on prices. New York Fed President John Williams said this week that there may not be 'urgency' to immediately raise rates again in October.

Investors remain cautious, however, as they await Friday's US employment data for September and Micron Technology Inc.'s fiscal fourth-quarter earnings report, which is expected to post sharp year-on-year growth in earnings and a surge in revenue to $50.45 billion.