FX.co ★ TSX Futures Rise as US PCE Inflation Undershoots Forecast

Futures tracking Canada’s main stock index rose on Wednesday after US PCE inflation came in slightly below expectations, easing some concern over further interest rate hikes by the Fed and the BoC. The Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) price index, increased 3.4% year-on-year, below the 3.7% forecast. Fed officials are closely monitoring inflation and spending data as they consider the timing of any additional rate increases. The softer-than-expected inflation reading reduced pressure on credit-sensitive stocks. At the same time, gold prices advanced, providing support to mining shares. Oil prices also rebounded amid uncertainty surrounding US–Iran negotiations, bolstering energy producers but weighing on rate-sensitive sectors as worries over persistent, energy-driven inflation lingered. Elsewhere, caution toward the tech sector is expected ahead of Micron’s fiscal fourth-quarter earnings report, due after the closing bell.