Canadian stock-index futures pointed to a lower opening on Thursday as rising bond yields and oil prices renewed concerns over inflation and interest rates.
Futures for Canada’s benchmark S&P/TSX index fell 0.52% at 05:19 a.m. ET (0919 GMT), after earlier hitting their lowest level since July 9.
The benchmark US 10-year Treasury yield edged up to 5.3327%, after retreating slightly from the multi-decade high reached on Wednesday.
Oil prices climbed more than 3% amid concerns about supply disruptions linked to heightened tensions in the Middle East, including fresh attacks on shipping in the Gulf and the Strait of Hormuz.
Higher energy costs have increased inflation concerns and strengthened expectations that central banks may keep borrowing costs elevated for longer.
Financial markets are now pricing in at least one 25-basis-point interest-rate increase from the Bank of Canada before the end of the year, according to LSEG data.
Traders are also expecting a quarter-point rate hike from the US Federal Reserve before the end of 2026, the data showed.
Gold prices were little changed after falling to a two-month low on Wednesday, while the materials sector, which includes precious-metal miners, dropped to its lowest level in three months.
Among individual companies, specialty hardware distributor Richelieu Hardware reported higher third-quarter revenue.
The TSX posted its sharpest one-day decline since June 5 on Wednesday, pressured by elevated bond yields and uncertainty over the US-Canada trade agreement, which weakened investor appetite for risk.
Goodness Anunobi
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