FX.co ★ TSX Futures Fall as Bond Selloff Weighs on Sentiment

Futures tracking the S&P/TSX Composite Index declined on Friday as a global bond-market selloff, triggered in part by stalled US–Iran negotiations, undermined risk appetite. Oil prices advanced amid the lack of progress toward an agreement to halt ship attacks and seizures around the Strait of Hormuz. Persistent concerns over broader stagflationary pressures and rising bond yields continued to weigh on bank stocks and the wider equity market.

Gold prices edged lower as mounting inflation worries boosted expectations for higher interest rates and drove US Treasury yields up, pressuring mining shares. On the corporate front, NXT Energy reported weaker first-quarter revenue and profit, citing a contract phase shift, while Questerre’s adjusted funds flow rose sharply on reduced Brazil-related costs.

Meanwhile, minutes from the Bank of Canada’s April meeting indicated policymakers felt they could afford to remain patient on interest rates, even as they acknowledged that economic conditions could shift rapidly.