FX.co ★ TSX Futures Slip Ahead of BoC and Fed Decisions

Futures linked to the S&P/TSX Composite Index declined by 0.5% on Monday as investors adjusted their positions in anticipation of forthcoming policy decisions from both the Bank of Canada (BoC) and the Federal Reserve. The stronger-than-expected employment data in Canada led to increased expectations that the BoC will maintain its current interest rates, with markets predicting a 97% chance of this outcome on Wednesday. Traders are projecting the next rate hike to occur in 2026. In the United States, the Federal Reserve is anticipated to implement a rate cut during its December meeting, although there is still some uncertainty concerning the policy direction for 2026, which has fostered a cautious market sentiment. Concurrently, a drop in oil prices put pressure on energy stocks, while a slight increase in gold prices provided some relief to mining sectors. In corporate developments, Anglo American chose to retract a proposal for revising executive bonus awards from a shareholder vote associated with its merger with Teck Resources, following opposition from investors. Teck shareholders are expected to cast their votes on the merger on December 9.