Canadian stock index futures moved higher on Monday, tracking gains across global equity markets as declining oil prices eased inflation concerns and improved investor confidence. Futures linked to the S&P/TSX Composite Index rose 0.2% in early trading after OPEC+ agreed to increase oil production from August, while exports through the Strait of Hormuz continued to recover, improving global supply expectations. Lower oil prices also reduced pressure on inflation, supporting broader market optimism.
Investor sentiment was further strengthened by expectations that the U.S. Federal Reserve may adopt a less aggressive approach to interest rate hikes following a weaker-than-expected U.S. jobs report last week. Traders now anticipate only one additional U.S. rate hike before the end of the year, while the Bank of Canada is widely expected to keep interest rates unchanged when it announces its next policy decision on July 15. Meanwhile, gold and silver prices slipped as the U.S. dollar stabilized after recent losses.
On Friday, Canada’s resource-heavy S&P/TSX Composite Index reached a two-week high, driven by gains in gold and copper prices that lifted mining stocks. Separately, Prime Minister Mark Carney is expected to announce the preferred bidder for a major contract to build 12 submarines for Canada’s navy. According to reports, the final contenders are German-Norwegian shipbuilder Thyssenkrupp Marine Systems and South Korea’s Hanwha Ocean.
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