Futures for Canada's main stock index fell on Thursday, hurt by a spike in U.S. bond yields as the unrest in global investor sentiment continued on prospects of no interest rate cuts any time soon and tensions escalating in the Middle East.
December futures on the S&P/TSX index were down 0.3% at 7:33 a.m. ET (1133 GMT). The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended 1.2% lower on Wednesday.
Global equities were under pressure as 10-year U.S. Treasury yields rose nearly 5%, levels not seen since the financial crisis in 2007.
Longer-dated Canadian bond yields also rose more than 4%.
Further weighing on sentiment was a fall in oil prices as the U.S. eased sanctions on Venezuela to allow more oil to flow globally, but fears of an escalation in the Israel-Hamas conflict kept a lid on losses.
However, spot gold prices edged higher to more than 2-month highs as investors rushed to safe-haven assets. U.S. gold futures eased 0.3%.
Markets will also be awaiting comments from U.S. Federal Reserve officials, including Chair Jerome Powell later in the day for more clues on the central bank's interest rate path.
