Canadian stock index futures edged up on Monday, tracking global stock markets, as a drop in oil prices eased inflation worries and lifted investor sentiment.

Futures tracking the S&P/TSX Composite index (SXFc1) were up 0.2% at 6:58 a.m. ET.

  • Oil prices ICEEUR:BRN1!, NYMEX:CL1! fell 0.6% after OPEC+ agreed to further raise output targets from August, while exports through the Strait of Hormuz continued to recover, increasing global supply prospects.

  • Expectations for a Federal Reserve rate hike this year have eased after last week's softer-than-expected jobs report, signaling a cooling labor market.

  • Traders are currently pricing in just one U.S. rate hike by the end of this year, according to LSEG data.

  • Meanwhile, the Bank of Canada is seen keeping interest rates on hold this year, with the next policy decision due on July 15.

  • Gold slipped from a two-week high as the dollar steadied after last week's declines. Spot gold TVC:GOLD and silver BIST:XAGUSD1! were down 0.8% and 0.7%, respectively.

  • On Friday, Canada's resource-heavy benchmark index TSX:TSX hit a two-week peak on stronger gold and copper prices, with metal miners leading broader gains.

  • Separately, Prime Minister Mark Carney is set to announce the preferred bidder for a contract to build 12 submarines for Canada's navy, the Globe and Mail reported.

  • The two contenders for the contract are German-Norwegian firm Thyssenkrupp Marine Systems XETR:TKA, and South Korean shipbuilder Hanwha Ocean KRX:042660.

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report

Canadian dollar and bonds report

Reuters global stocks poll for Canada (EQUITYPOLL1), (EPOLL/CA)

Canadian markets directory (CANADA)