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Canada Stocks: TSX futures rise as yields ease, gold gains

CANADA STOCKS-TSX futures rise as yields ease, gold gains

- Futures tied to Canada's main stock index rose on Tuesday as bond yields steadied and precious-metal prices edged higher, helping the domestic market shrug off a global selloff in semiconductor shares.

December futures on the S&P/TSX index SXFcv1 were up 1.1% at 5:59 a.m. ET (0959 GMT).

  • Oil prices fell, on track for their first decline in nearly a week, as traders weighed risks to Saudi supply against higher Russian diesel exportsO/R

  • Brent crude LCOc1 slipped about 2% to $104.78 a barrel, potentially pressuring energy stocks at the open

  • Canada's benchmark 10-year yield CA10YT=RR eased to 3.878%, while the US equivalent US10YT=RR was little changed at 5.244%

  • Gold XAU= and silver prices XAG= edged higher as oil retreated, while investors awaited this week's US consumer inflation data for clues on the Federal Reserve's rate outlook GOL/

  • Global equities came under pressure after reports of rapid advances by Chinese memory-chip maker CXMT sparked worries that China is closing the technology gap MKTS/GLOB

  • Investors have also been grappling with inflation concerns tied to higher energy prices and rising government debt, factors that could keep borrowing costs elevated

  • Markets are pricing in at least one additional 25-basis-point Fed rate hike before year-end, according to LSEG data

  • In Canada, the TSX posted its biggest gain in five weeks on Friday after soft jobs data reduced expectations for another Bank of Canada rate increase, with markets now seeing just a 28% chance of a hike at this month's meeting

  • Attention is shifting to corporate earnings, with major US banks kicking off the reporting season on Tuesday

  • In company news, Czech arms maker CSG CSG.AS said it acquired a 9.5% stake in MDA Space MDA.TO, making it the Canadian satellite and space technology company's largest shareholder

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report .TO

Canadian dollar and bonds report CAD/ CA/

Reuters global stocks poll for Canada EQUITYPOLL1, EPOLL/CA

Canadian markets directory CANADA


(Reporting by Anand Gopal in Bengaluru; Editing by Shreya Biswas)

((AnandGopal.R@thomsonreuters.com))

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