TSX Futures Edge Lower Ahead of BoC Meeting

Futures tracking the S&P/TSX Composite Index edged lower on Wednesday as investors assessed escalating tensions in the Middle East and awaited the Bank of Canada's interest rate decision. Oil prices rose as the worsening conflict continued to fuel concerns over global supply disruptions. Higher energy prices also revived inflation worries, weighing on financial stocks and the broader index. Meanwhile, the Bank of Canada is widely expected to keep its key policy rate unchanged at its July meeting later in the session. Elsewhere, Cogeco Communications is set to release its third-quarter results later in the day. On the data front, Canada's manufacturing sales reached a record high in May, rising 1.3% month-over-month to C$78.1 billion.

The S&P/TSX Composite Index added 0.2% to close at 35,320 on Tuesday following the release of US inflation data. US consumer prices declined in June for the first time in six years, while core inflation was little changed, easing pressure on the Federal Reserve to raise interest rates. Financials traded higher, with RBC up 1%, TD Bank adding 1.2%, and Brookfield gaining 1.3%. Meanwhile, the BoC is widely expected to keep its key policy rate unchanged at 2.25% on Wednesday. Gold prices advanced, supporting mining stocks. Barrick gained 0.9%, while Franco-Nevada added 0.6%. Meanwhile, energy stocks traded lower after US President Trump abandoned plans to impose a 20% fee on cargo passing through the Strait of Hormuz under US military protection. Canadian Natural lost 1.6%, Suncor shed 1%, and Imperial Oil was down 1.6%.

The S&P/TSX Composite Index rose 0.5% to trade near 35,500 on Tuesday following the release of US inflation data. US consumer prices declined in June for the first time in six years, while core inflation was little changed, easing pressure on the Federal Reserve to raise interest rates. Financials traded higher, with RBC, TD Bank, BMO, and CIBC each gaining nearly 1%. Meanwhile, the BoC is widely expected to keep its key policy rate unchanged at 2.25% on Wednesday. In contrast, oil prices rose on renewed concerns over crude shipments through the Strait of Hormuz amid the escalating US-Iran conflict, fueling worries about higher energy costs. Gold prices also advanced, supporting mining stocks. Agnico Eagle, Franco-Nevada, and WPM gained more than 2%, while Barrick added over 2.5%.