FX.co ★ TSX Futures Edge Lower After CPI

Futures tied to Canadian stocks edged lower on Monday after the latest inflation data, following the S&P/TSX Composite Index’s record close on Friday. Canada’s headline CPI rose 3.0%, slightly above the 2.9% consensus forecast. Core inflation measures monitored by the Bank of Canada also ticked higher, reinforcing expectations that the central bank will keep interest rates unchanged for the rest of the year.

Geopolitical tensions in the Middle East remained elevated, with little indication of a near-term resolution. Rising oil prices added to inflationary pressures, weighing on financial stocks and the broader index. The July inflation report also showed fuel prices accelerating.

In corporate news, Abaxx Technologies reported a wider net loss in the second quarter. OceanaGold announced plans to acquire Ausgold in a transaction valued at A$776 million. On the trade front, Canadian Trade Minister Dominic LeBlanc told an advisory committee on Friday that Canada and the United States remain far from even a draft trade agreement, despite holding regular talks.