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20.10.202612:53:45UTC+00TSX Futures Slip on Rate Hike Bets and US-Canada Trade War

Futures tracking Canada’s stock market slipped on Tuesday as investors braced for a more hawkish Bank of Canada and monitored rising trade tensions with the United States. Bets on a rate hike at next week’s policy meeting increased after September inflation data exceeded the upper end of the BoC’s target range. The prospect of tighter monetary policy, coupled with higher energy prices amid escalating tensions in the Middle East, dampened sentiment toward interest-rate-sensitive sectors, particularly major banks. A BoC survey released on Monday further underscored a weakening corporate outlook, indicating that Canadian firms had turned more pessimistic following the breakdown of trade talks with the US. At the same time, lower gold prices added to the pressure on mining shares.

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