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22.10.202613:15:34UTC+00TSX Futures Fall on Rising Oil and BoC Rate Hike Bets

Futures tracking Canada’s main stock index declined on Thursday as rising oil prices stoked inflation worries and reinforced expectations that interest rates will remain higher for longer. Crude prices advanced after renewed Houthi attacks in Saudi Arabia intensified concerns about a broader escalation of the Middle East conflict and extended supply disruptions. Markets are now pricing in additional rate hikes from both the Bank of Canada and the U.S. Federal Reserve this year, pressuring rate-sensitive stocks amid concerns over energy-driven inflation and increased borrowing costs. At the same time, global chip-related shares weakened after earnings from major U.S. megacap companies underwhelmed investors, deepening anxiety about the sustainability of AI-related spending. Separately, Canada unveiled a C$9 billion support package aimed at sectors most affected by U.S. tariffs.

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