TSX Futures Edge Lower on Elevated Yields

The S&P/TSX Composite Index inched lower to below 36,000 on Thursday as a sharp rise in global government bond yields weighed on stock markets. Canada’s 10-year government bond yield neared a three-year high as energy-driven inflation concerns persisted and US Treasury yields soared to multi-decade highs. Crude oil rose amid heightened Middle East tensions, while strong economic data released on Wednesday drove US yields higher, intensifying the global move amid rising expectations of another Fed hike this year. Financial stocks traded mostly near flat. Gold prices fell, pressuring mining stocks, with Agnico Eagle, Barrick, and WPM all shedding more than 1%. Kinross plunged nearly 10% after lowering its production outlook for 2026 and 2027. Meanwhile, energy shares gained on higher oil prices. Retailers rose as estimates showed retail sales likely rebounded in August, posting their strongest gain since January. Elsewhere, BlackBerry shed over 1% despite reporting strong 2Q26 results.

Futures tracking Canadian equities edged lower on Thursday as a sharp rise in global government bond yields weighed on stock markets. Canada’s 10-year government bond yield neared a three-year high as energy-driven inflation concerns persisted and US Treasury yields soared to multi-decade highs. Crude oil rose amid heightened Middle East tensions, while strong economic data released on Wednesday drove US yields higher, intensifying the global move amid rising expectations of another Fed hike this year. Concerns over elevated borrowing costs have weighed heavily on credit-sensitive stocks. Gold prices fell amid surging Treasury yields, pressuring mining stocks. Elsewhere, BlackBerry reported strong 2Q26 results, with EBITDA surging 81%. On the data front, Canadian retail sales likely rebounded in August, according to preliminary estimates, which point to the strongest gain since January.

The S&P/TSX Composite Index fell 1.6% to close at 35,751 on Wednesday as yields reached multi-year highs. Bond yields rose sharply as energy-driven inflation concerns persisted, with oil prices moving higher amid uncertainty over diplomatic efforts to end the US-Iran war and reopen the Strait of Hormuz. Strong US economic data also strengthened expectations that the Fed could deliver another rate hike this year. US Treasury yields soared to multi-decade highs, further pressuring Canadian bonds as domestic yields tend to track US rates. Major banks posted losses, with RBC down 2%, TD Bank falling 2.4%, BMO shedding 2%, and Scotiabank retreating 1.6%. Gold, silver, and copper extended their declines, pressuring miners. Agnico Eagle fell 3.9%, Barrick declined 3.2%, and WPM tumbled 5.4%.