CANADA STOCKS-TSX futures edge higher as gains in metals offset oil weakness

By Reuters News

Oct 16 (Reuters) - Futures tied to Canada's resource-heavy main stock index edged higher on Friday as rising metals prices helped sentiment, while investors weighed Bank of Canada Governor Tiff Macklem's warning on persistent energy-price pressures on interest rates.

December futures on the S&P/TSX index rose 0.4% at 6:45 a.m. ET (1045 GMT).

  • The materials sector .GSPTTMT is poised to extend gains as gold and silver prices rise

  • Macklem said Canada has not raised interest rates yet but the longer elevated energy prices go on "the harder that gets"

  • The BoC is not expected to raise interest rates at its next monetary policy decision announcement on October 28, but money markets are pricing in a rate hike of 25 basis points in December, according to data compiled by LSEG

  • Data on the day showed that Canadian home sales extended their decline in September, after a drop in August, as higher mortgage rates and expectations of a rate hike weighed on demand

  • Oil prices eased but were set for weekly gains on Middle East supply concerns and a larger-than-expected US crude draw, despite weaker diesel margins O/R

  • Brent crude futures were down 0.12%, but still hovered above the benchmark $100 a barrel, keeping focus on the energy sector .SPTTEN, which has climbed over 58% this year.

  • The TSX closed at a three-week high on Thursday and was on track to post gains in the holiday-shortened week.

  • Receding global bond yields helped support sentiment, despite hotter-than-expected US inflation data and renewed concerns over AI-related debt financing

  • Global markets also stabilized after a sharp tech-led selloff in the previous session MKTS/GLOB

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