Investing.com – Futures linked to Canada’s main stock index edged slightly higher on Tuesday, with investors awaiting upcoming domestic growth data and ongoing fluctuations in energy prices.
By 06:47 ET (10:47 GMT), the S&P/TSX 60 index standard futures contract had ticked up by 3 points, or 0.1%.
On Monday, the S&P/TSX composite index finished at its lowest level in almost two months, weighed down heavily by the key materials and financials sectors.
Gross domestic product data for Canada, due out later today, could offer some new insight into how the economy is grappling with trade tensions with the U.S. and an energy-price shock sparked by the war in Iran.
U.S. futures muted
U.S. stock index futures hovered around the flatline on Tuesday, after soaring bond yields dented Wall Street in the prior session.
By 06:07 ET (10:07 GMT), the Dow futures contract had dropped by 40 points, or 0.1%, S&P 500 futures were mostly unchanged, and Nasdaq 100 futures had risen by 32 points, or 0.1%.
The main averages on Wall Street retreated in the prior session, weighed down largely by the extended debt market selloff. The benchmark 10-year Treasury yield hit a new 19-year high, while the longer-dated 30-year rate spiked to its most since 2004. Yields tend to move inversely to bond prices.
“[I]t was another session where September lived up to its reputation as the worst month of the year for asset performance, with bonds and equities continuing to struggle,” analysts at Deutsche Bank said in a note.
Underpinning the declines was President Donald Trump’s decision to reject a fresh peace proposal from Iran that would have reopened the Strait of Hormuz and provide some relief to constrained energy markets. Oil prices rose as a result on Monday, exacerbating worries over that a prolonged energy shock could cause the Federal Reserve to raise rates multiple times this year.
Benchmark Brent crude futures expiring in November were last trading lower by 0.6% at $104.58 a barrel, while U.S. West Texas Intermediate crude futures had dipped by 0.8% to $91.91 a barrel.
Elsewhere, gold prices advanced on Tuesday, but remained not far from a seven-week low, as the stalemate between the U.S. and Iran over the Strait of Hormuz kept energy prices higher and reinforced expectations for further Fed rate hikes.
