TSX Futures Rise Amid Easing Inflation Concerns From Oil Price Dip

By EC Assets · Published

TSX futures advanced today as falling oil prices tempered inflation concerns. The Canadian blue-chip futures rose, building on earlier momentum. Brent oil prices decreased by 1.41%, and crude oil prices dropped by 0.41%. A dip in oil prices helped ease inflation fears. Nasdaq futures led Wall Street gains as oil's retreat lessened inflation worries. Stocks and Treasuries increased as oil prices fell, boosting hopes for controlled inflation. The Federal Reserve recently hiked interest rates. Canada's main stock index previously fell to a nearly seven-week low on Wednesday. That decline occurred as oil prices dropped and the Federal Reserve raised interest rates. Futures tracking Canada's main stock index inched lower on Monday ahead of August CPI data. Rising crude prices then rekindled inflation worries. Weaker gold prices also dampened sentiment at that time. Futures tracking Canada's blue-chip stocks rose on a Friday in May. This rise followed a deal to extend the U.S.-Iran ceasefire, which renewed hopes for an end to the Middle East conflict. The 10-year Treasury is experiencing its worst run in over 100 years. Investors are still buying bonds. Higher yields make putting money into bonds more enticing for new money. Central banks are facing a global rate-hike cycle as they address inflation. Japan raised its interest rate to a new 31-year high to curb rising prices. Barclays and UBS support Bank of England hikes as inflation risks mount. The Bank of England is expected to keep rates steady on Thursday despite UK inflation rising to 3.1%. Energy costs continue to pressure prices. This article is intended for informational purposes only. It does not constitute investment advice.

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