Futures tracking Canadian stocks declined on Thursday, pressured by higher oil prices and rising bond yields. Crude extended its rally after Washington and Tehran carried out the largest wave of attacks on shipping in the Strait of Hormuz on Wednesday. Global bond yields climbed on concerns that inflation will remain elevated, following a stronger-than-expected U.S. PPI reading and ahead of Friday’s CPI release.
Growing expectations of another Federal Reserve rate hike weighed on interest rate–sensitive sectors, while weaker gold prices dragged down mining shares. In corporate news, Enbridge said Wednesday it will acquire Tallgrass Energy’s crude oil business for $2.55 billion in cash, broadening its U.S. liquids pipeline network through a majority stake in the Pony Express Pipeline and related assets.
