Oil Rally Fuels Inflation Fears
TSX Falls as Oil Rally Revives Inflation and Higher Interest Rate Fears
Anonymous
Canadian stock-index futures were little changed Tuesday as investors awaited GDP data for clues about economic momentum and the Bank of Canada’s policy outlook. The cautious tone followed a roughly 0.9% decline in the S&P/TSX Composite on Monday, its weakest close in nearly two months. Oil’s renewed rally, after U.S. President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz, revived inflation concerns and the prospect of interest rates staying higher for longer. Energy shares rose, while falling gold prices weighed on miners and financial-sector losses added pressure to the broader market.
Key Points
1
The upcoming Canadian GDP figures could help show how the economy is handling both U.S. trade tensions and the energy-price shock linked to the war in Iran.
2
A selloff in the U.S. bond market also weighed on Wall Street: the 10-year Treasury yield reached a 19-year high, while the 30-year yield climbed to its highest level since 2004.
3
The S&P/TSX 60 futures contract was up 0.1% in early trading, while December futures on the broader S&P/TSX index were down 0.05%, reflecting the muted tone ahead of GDP data.
Sentiment
Mostly NegativeNEGATIVENEUTRALPOSITIVE
Publishers
13
Articles
44
Reach
57
A
AnonymousAuthor
