Sep 16 (Reuters) - Futures tracking Canada's main stock index rose on Wednesday as oil prices and bond yields paused after a recent surge, while investors braced for a widely anticipated interest-rate hike from the U.S. Federal Reserve.
September futures on the S&P/TSX index were up 0.15% at 6:18 a.m. ET. The index fell 0.3% on Tuesday after the 10-year U.S. Treasury yield rose above 5% on concerns over high inflation and growing government debt load.
Markets, betting that Fed policymakers will lift the benchmark rate by 0.25 percentage point to a 3.75% to 4% range, signal further tightening ahead. The policy decision is due at 2:00 p.m. ET (1800 GMT).
The 10-year Treasury yield dipped to 4.99% after surging to a multi-decade high of 5.04% on Tuesday.
Oil prices fell after reports of Saudi Arabia offering additional crude cargoes via Oman eased concerns about the Middle East supply disruptions. Brent crude was last down 0.9% at $107.76 a barrel.
A surge in global bond yields has weighed on equity markets in recent weeks as investors fear central banks will keep monetary policy tighter for longer to tame inflationary pressures stemming from soaring energy prices.
Gold prices climbed more than 1% ahead of the Fed decision.
In other news, European Commission President Ursula von der Leyen said the European Union is opening the door for Canada to become its first "associate member," a status that is not set out in the bloc's treaties.
The EU and Canada will work together across sectors including manufacturing, AI, critical minerals and energy, she said.
Canadian Prime Minister Mark Carney's trip follows a historic breakdown in Canada-U.S. relations after trade talks collapsed last month, sparking a series of tit-for-tat tariff measures.
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Reporting by Darshan Kumar in Bengaluru; Editing by Shreya Biswas
