TSX Futures Decline on Higher Global Yields

The S&P/TSX Composite Index fell more than 0.5% to trade below 36,500 on Tuesday amid rising global bond yields. Renewed hostilities in the Middle East lifted oil prices, prompting markets to reassess expectations for interest rate hikes by central banks. The BoC is expected to leave rates unchanged on Wednesday, while Canada’s 10-year yield reached a near two-week high. Financial stocks traded mostly lower, while higher yields also weighed on gold prices, pressuring miners. Agnico Eagle fell nearly 3%, while Barrick, WPM and Franco-Nevada lost about 2%. Tech stocks extended losses, with Shopify down more than 3.5%. In contrast, energy stocks gained, with Canadian Natural, Suncor and Cenovus adding around 2% each.

TSX decreased to 35978.00 Index Points, the lowest since August 2026. Over the past 4 weeks, Canada Stock Market Index (TSX) gained 0.59%, and in the last 12 months, it increased 25.85%.

Futures tracking Canadian stocks moved lower on Tuesday amid rising global bond yields. Renewed hostilities in the Middle East lifted oil prices, prompting markets to reassess expectations for interest rate hikes by central banks. US Fed Chair Warsh’s speech at Jackson Hole on Friday reiterated the central bank’s focus on fighting inflation, raising expectations for a rate hike this month. The BoC is expected to leave rates unchanged on Wednesday. Still, Canada’s 10-year yield reached a near two-week high. The backdrop pressured financials and other credit-sensitive stocks and weighed on gold prices, pressuring mining shares. Rallies in gold miners have been the main driver of the TSX’s recent monthly gains.