A screen shows a price of Canada’s main stock index, the Toronto Stock Exchange’s S&P/TSX composite index, as it rose to a record high in Toronto, Ontario, Canada January 7, 2021. REUTERS/Chris Helgren/File Photo Acquire Licensing Rights
Oct 27 (Reuters) – Futures for Canada’s main stock index rose on Friday as the U.S. benchmark Treasury yield retreated, while investors awaited key inflation data from the world’s largest economy amid signs of escalating conflict in the Middle East.
December futures on the S&P/TSX index were up 0.3% at 6:34 a.m. ET (10:34 GMT).
Yield on the U.S. 10-year Treasury note edged 2 basis points higher on Friday to 4.8664% but remained away from the crucial 5% mark.
All eyes will be on the U.S. Commerce Department’s Personal Consumption Expenditure (PCE) report, due at 8:30 a.m. ET, which will likely show core inflation growing 0.3% in September on a monthly basis, with the annual rate expected to edge lower to 3.7%.
Global stocks have been under pressure this week as developments in the Middle East and the expectations of prolonged elevated interest rates kept investors on edge.
Concerns grew that the Israel-Hamas conflict may spread in the Middle East as the Pentagon said U.S. fighter jets struck facilities in Syria used by Iran’s Revolutionary Guard Corps and militias that it backs.
The news is expected to boost energy shares <.SPTTEN > as oil prices rose by over $1 on concerns that a widening conflict could impact supply from the Middle East.
The conflict in the Middle East also helped boost gold prices for the third consecutive week, pushing materials stocks (.GSPTTMT), as investors continued to be drawn towards the safety of the bullion despite a higher-for-longer U.S. interest rate backdrop.
The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) ended Thursday down 0.4%, its lowest closing level since October 2022.
U.S. futures climbed on Friday as robust forecasts from tech companies Amazon.com and Intel lifted megacap stocks.
COMMODITIES AT 6:34 a.m. ET
Gold futures : $1,987; -0.1%
US crude : $85.02; +2.2%
Brent crude : $89.91; +2.3%
($1= C$1.3809)
Reporting by Shubham Batra in Bengaluru; Editing by Tasim Zahid
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