Futures tracking the S&P/TSX Composite Index fell on Friday, putting the benchmark on course for a third consecutive weekly decline amid persistent stagflation concerns driven by surging energy prices. The jump in crude has propelled a gauge of Canadian energy stocks to gains of more than 38% so far this year, but has also stoked inflation worries that are weighing on the outlook for financial services providers.
On Thursday, the Bank of Canada left its key interest rate unchanged but cautioned that it is prepared to raise borrowing costs again if inflationary pressures re‑emerge, keeping bank shares under pressure. The central bank’s hawkish tone was reinforced by data released before the opening bell, which showed sharp increases in both retail sales and producer prices.
