Oct 20 (Reuters) - Futures tracking Canada's main stock index inched lower on Tuesday as persistently high inflation, softer gold prices and worries stemming from trade tensions with the US weighed.
December futures on the S&P/TSX index declined 0.13% at 05:50 a.m. ET (0950 GMT).
The benchmark index (.GSPTSE), retreated from a three-week high on Monday, after September's domestic inflation data came in above the Bank of Canada's upper limit
Traders raised their bets for a Bank of Canada interest rate hike next week, and are now pricing in nearly an 85% chance of a quarter-point increase, according to LSEG
The Bank of Canada also released a survey on Monday, showing that Canadian firms' outlook had deteriorated after the collapse of trade talks with the US
Still, overall sentiment remained considerably stronger than at the peak of trade tensions last year, the central bank said
The yield on Canada's benchmark 10-year bond rose 13.3 basis points on Monday to 3.96%
Spot gold prices eased 0.6% as higher oil prices fanned inflation worries
Brent crude futures were at a five-month high, above $110 per barrel after Yemen's Houthis said they launched several attacks on Saudi energy sites
German Chancellor Friedrich Merz said on Tuesday that Canada has become more pro-European than ever, and more will follow as he pitched Europe's largest economy to investors in Berlin
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Reporting by Anand Gopal in Bengaluru; Editing by Leroy Leo
