Canadian stock index futures edged lower on Thursday, extending a pullback from a three-day winning streak as the recent bond market rally lost momentum.
The S&P/TSX Composite Index (.GSPTSE) declined 0.1% to close at 36,365.42, following a 0.1% gain the prior session. North American equities retreated after U.S. benchmarks fell more than 1%, with the S&P 500 down nearly 1%.
The Canadian dollar strengthened to its highest level in nearly three months against the U.S. dollar, trading 0.1% higher at 1.3790 per greenback, or 72.52 U.S. cents. The loonie touched an intraday peak of 1.3757, its strongest since May 21.
Trade negotiations between the U.S. and Canada appear to be nearing resolution, with reports indicating a potential agreement could be finalized soon. Proposed adjustments to tariff rates include reducing top-line duties on Canadian-built vehicles from 25% to 15%, while levies on Canadian steel and aluminum would be halved to 25%.
Oil prices extended gains, with WTI crude rising more than 6% since last Friday. Both WTI and Brent settled over 2.3% higher on the day. Gold prices retreated after a recent surge as investors took profits.
On the monetary policy front, the U.S. Federal Reserve maintained its benchmark interest rate at the July meeting, with three of the 12 voting members of the Federal Open Market Committee favoring a quarter-point hike. Among the 19 total FOMC participants, including non-voting members, several indicated that further tightening may be warranted if inflation fails to ease toward the Fed’s 2% target.
Canadian Prime Minister Mark Carney said the country had secured the best terms for its strategic industries in the ongoing trade discussions. U.S. President Donald Trump highlighted potential benefits for American farmers in the proposed deal, while also warning of retaliatory measures tied to broader geopolitical tensions.
