CANADA STOCKS-TSX futures slip as Fed hawks cool rate-cut hopes

BY Reuters | ECONOMIC | 11/14/25 06:07 AM EST

Nov 14 (Reuters) - Futures for Canada's main stock index fell on Friday, as hawkish comments from U.S. Federal Reserve officials dampened hopes of a December rate cut.

Canada's benchmark index tumbled 1.9% on Thursday - its sharpest drop since April - as tech shares led a broad retreat, erasing much of the prior day's rally that had propelled it to a record high. Still, the S&P/TSX composite is on course for its best weekly showing since late September, up 1.14% and poised to snap a two-week losing streak.

December futures on the S&P/TSX index were down 0.37% as of 05:47 a.m. ET.

Canadian stocks had advanced this week as hopes for a Fed rate cut next month lifted risk appetite, with the return of key U.S. economic data expected to reveal signs of weakness and steer policymakers toward easing borrowing costs. But fresh remarks from Fed officials have tempered those bets, slashing the odds of a December cut to 49%.

Lending support to futures on the day, oil prices climbed 2%, helped by supply fears as a Russian port in the Black Sea suspended oil exports after a Ukrainian attack.

In corporate news, Globe and Mail reported that Swedish defense company Saab is in talks with the Canadian government and Bombardier to build its Gripen fighter jet under license in Canada. The project is expected to create 10,000 jobs in the country.

Canada's ECN Capital (ECNCF) said a Warburg Pincus-led investor group will buy the financial services firm in a C$1.9 billion ($1.35 billion) deal, signaling growing private-equity interest in the sector following policy easing.

Engineering services provider Stantec (STN) slightly missed estimates for third-quarter revenue. (Reporting by Avinash P in Bengaluru; Editing by Sahal Muhammed)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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