TSX Futures Edge Lower Amid Global Bond Rout

The S&P/TSX Composite Index edged lower toward the 35,000 mark as a global bond rout pushed borrowing costs to multi-decade highs amid volatile oil prices. Global bonds extended their selloff, weighing on broader markets. The Canadian 10-year yield pared earlier losses on Thursday, remaining at multi-year highs. Oil prices rose further on reports of tighter Chinese fuel supplies, fueling persistent energy-driven inflation concerns, pushing yields higher and pressuring credit-sensitive sectors. Major banks fell, with RBC, BMO and Scotiabank down about 1%, while TD Bank and CIBC shed around 0.5%. Miners were mostly lower as gold prices pared earlier gains, with Barrick down more than 0.5% and WPM losing 1%. First Quantum was the main exception, rebounding by near 5% from a 15.3% plunge yesterday after a Panamanian government commission recommended formal talks on a new framework for the Cobre Panamá mine. Panama had previously urged the orderly closure of the mine.

Futures tracking the TSX inched lower on Thursday as a global bond rout pushed borrowing costs to multi-decade highs amid volatile oil prices. Global bonds extended their selloff, weighing on broader markets. The Canadian 10-year yield eased on Thursday but remained near multi-year highs. Oil prices rose further on reports of tighter Chinese fuel supplies, fueling persistent energy-driven inflation concerns, pushing yields higher and pressuring credit-sensitive sectors. Meanwhile, miners were set to open higher as gold prices climbed amid reduced expectations for another Fed interest-rate hike this month, after softer-than-expected US PCE inflation data eased rate-hike concerns. Canada’s September PMI data, due later in the day, will offer a read on business activity.

The S&P/TSX Composite Index fell 0.6% to close at 35,236 on Wednesday as losses in banking and mining more than offset gains among energy producers. Oil prices rebounded amid uncertainty over US-Iran negotiations, supporting energy stocks but pressuring credit-sensitive sectors as concerns over persistent energy-driven inflation remained. Most major banks traded lower, with RBC losing 1.1% and TD Bank shedding 0.9%. Imperial Oil rose 1.1%, while Suncor gained 10.7%. Meanwhile, gold prices reversed earlier gains, weighing on mining shares, with Barrick down 1%, Agnico Eagle shedding 1.3%, and Franco-Nevada losing 3.8%. First Quantum plunged 15.3% after a Panamanian commission urged the orderly closure of its Cobre Panama mine. On the month, the S&P/TSX Composite Index shed 2.1%.