TSX futures flat as investors cut rate hike expectations

Kitco Media
By Reuters
Published:
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Reuters
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Oct 5 (Reuters) - Futures tracking Canada's blue-chip stocks were little changed on Monday after the benchmark index rose in the prior session as a soft US ​jobs report cut the odds of an imminent rate hike by ‌the US Federal Reserve.

December futures on the S&P/TSX index were flat at 06:26 a.m. ET (1026 GMT).

Toronto Stock Exchange's S&P/TSX Composite Index (.GSPTSE), gained nearly 1% ​on Friday as a softer-than-expected US payrolls report reduced the ​likelihood of a Fed rate hike later this month

Traders see a 20% ⁠chance of the Fed hiking interest rates at its meeting later ​this month, down from nearly 71% a week ago, CME's FedWatch ​tool showed

While odds of an October rate hike by the Bank of Canada have receded, investors still expect the central bank to raise lending rates ​at least once before the end of 2026, according to ​LSEG-compiled data

Gold prices climbed on Monday, lending some support to the commodity-heavy Canadian ‌market

Oil ⁠prices were steady and kept markets on edge as elevated energy prices stoke inflation worries and push up borrowing costs
Still, higher crude prices have helped lift the energy sector (.SPTTEN), the best performing TSX sector this year, and helped ​the blue-chip index ​gain nearly 12% in ⁠2026

Among company news, Canada's Suncor Energy (SU.TO), said it had agreed to sell its interests in three offshore ​oil assets to London-based Ithaca Energy (ITH.L), for C$1.2 billion ($841.69 ​million) ⁠in upfront cash

Cenovus Energy (CVE.TO), said it would acquire Athabasca Oil in a cash-and-stock transaction valuing the Canadian oil producer at an implied enterprise ⁠value of ​C$5.7 billion ($4.00 billion)

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Reporting by Avinash P in Bengaluru; Editing by Sahal Muhammed

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