FX.co ★ TSX Futures Edge Higher Following GDP Data

Futures tracking Canadian equities inched higher on Tuesday after soft GDP data reinforced expectations that the Bank of Canada is unlikely to raise interest rates this year. Advance estimates showed real GDP grew 0.2% in August, with strength in mining and quarrying and in retail trade partly offset by weaker oil and gas extraction. GDP was essentially flat in July. At the same time, oil prices retreated as US and Iranian officials continued separate talks through intermediaries. The pullback in crude and fuel prices provided some relief to interest rate–sensitive stocks, which had come under pressure amid inflation worries tied to the earlier oil rally. Gold prices advanced, offering additional support to mining shares.