TSX futures slide as bond yields surge ahead of retail sales data

Kitco Media
By Reuters
Published:
Updated:
Reuters
TSX futures slide as bond yields surge ahead of retail sales data teaser image

Sept 24 - Futures tracking Canada's blue-chip stocks retreated on Thursday as a sharp rise in global government bond yields weighed on ​sentiment, while investors awaited retail sales data for ‌clues on the health of Canadian consumers.

December futures on the S&P/TSX index were down 0.48% at 5.49 a.m. ET (9.49 a.m. ​GMT).

The benchmark US 10-year Treasury yield climbed to 5.139%, its ​highest level since 2007, as higher crude prices aggravated ⁠inflation pressures, prompting traders to increase bets on Federal ​Reserve rate hikes.

Its Canadian equivalent climbed to 3.953%.

Retail sales data due ​later in the day will be closely watched for insights for signals on the health of Canadian consumers.

Canada's mining-heavy bourse could ​come under pressure as gold prices fell 0.5% to $4,265.89 ​per ounce, pressured by rising Treasury yields and higher oil prices.

Spot ‌silver ⁠fell 1.2% to $63.72 per ounce.

Oil prices rose more than 2% on Thursday as little progress was made in diplomatic talks between the US and Iran, while uncertainty over ​a potential US ​ban on ⁠diesel exports added to supply concerns.

The benchmark TSX (.GSPTSE), posted its biggest one-day decline since ​June 5 on Wednesday, with financial (.SPTTFS), and ​materials (.GSPTTMT), stocks ⁠among the biggest drags.

In company news, communications and software firm BlackBerry (BB.TO), is scheduled to report quarterly results on Thursday.

FOR ⁠CANADIAN ​MARKETS NEWS, CLICK ON CODES:

TSX ​market report

Canadian dollar and bonds report CA/

Reuters global stocks poll for Canada

Canadian markets ​directory

Reporting by Darshan Kumar in Bengaluru; Editing by Sahal Muhammed

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