TSX Futures Slide Ahead of US Inflation Data Amid Rate Hike Fears
TSX futures were muted on Thursday as markets awaited US inflation data for clues on the Federal Reserve's monetary policy outlook. The S&P/TSX index September futures were down 0.07% at 06:05 a.m. ET, hovering near their lowest since July 31.
The investor focus is squarely on US producer inflation data due later in the day and a consumer price index (CPI) report expected on Friday. The 10-year U.S. Treasury yields were at their highest since 2023 after the announcement of an enlarged Treasury buyback of longer-dated securities on Wednesday disappointed investors.
Traders see more than a 60% chance of a Fed rate hike next week, according to CME Group's FedWatch tool, as rising yields and escalating tensions in the Middle East have rekindled fears of prolonged inflation. Brent crude prices were holding firm above $100 a barrel following the biggest wave of attacks on shipping in the Strait of Hormuz by Washington and Tehran on Wednesday.