FX.co ★ TSX Futures Rises on Lower Bond Yields

Futures linked to Canada's S&P/TSX Composite Index experienced an uptick on Friday, buoyed by lower-than-anticipated US inflation figures. This development led to a decrease in government bond yields throughout North America, subsequently bolstering equities. In the US, consumer prices rose by 0.3% in September, resulting in an annual inflation rate of 3%, slightly below the predicted 3.1%. This alleviates some pressure on central banks regarding the maintaining of stringent policies. However, the market's potential for further gains was tempered by renewed trade tensions with the United States. This followed President Donald Trump's announcement late on Thursday that all trade negotiations with Canada were terminated. He cited a "fraudulent" advertisement by the Ontario government featuring former President Ronald Reagan's critique of tariffs as the catalyst. These remarks rekindled a sense of uncertainty, thus limiting the index's potential advancement. Concurrently, gold prices dipped by more than 1% due to diminished demand for safe-haven assets following eased tensions between the US and China. This downturn negatively affected mining giants Barrick and Agnico Eagle. Nonetheless, stable oil prices are anticipated to lend support to major energy firms such as Suncor, Imperial Oil, and Canadian Natural.