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Technology shares help lift TSX to another record high

  //science-technology.news-articles.net/content/2 .. shares-help-lift-tsx-to-another-record-high.html
  Published in Science and Technology on Monday, September 29th 2025 at 21:20 GMT by reuters.com
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Canada’s TSX Futures Gain on Gold Rally While U.S. Shutdown Concerns Persist

On Wednesday, September 29, 2025, Canadian equity futures nudged higher, buoyed by a steep climb in gold prices and a sense that a U.S. government shutdown—if triggered—could amplify market volatility. Reuters’ market snapshot, “TSX futures rise, gold gains, U.S. government shutdown fears loom,” provides a concise but comprehensive look at the forces at play across North America and beyond.

TSX Futures Move Higher Amid Safe‑Haven Demand

The S&P/TSX Composite Index futures, which gauge the Toronto Stock Exchange’s overall trajectory for the next trading day, gained 0.6 % (up 2.50 pts) to 23,900.50. That lift was led by a 1.3 % rise in the S&P/TSX 60 Index futures, which rose 0.7 % (up 2.90 pts) to 23,920.25. While the TSX has been trading at a near‑record high during the last trading session, the futures still carry a modest upward bias, reflecting optimism that Canadian equities will stay in line with the strong performance seen in recent days.

The Canadian dollar, which has slipped in recent weeks due to a drop in oil prices, remained a little weaker than the U.S. dollar at 1.3545 USD/ CAD. Its marginal decline helped support Canadian stocks, particularly those in the energy sector, as lower domestic currency value translates to higher earnings for companies with significant foreign currency exposure.

Gold’s Rally Fuels Safe‑Haven Appetite

Gold, which has been on a rally that saw the metal surpass the $1,900 threshold for the first time in years, gained 1.4 % to reach $1,971.90 per ounce on the global spot market. The jump was the fastest in two weeks and tied a record high seen in mid‑September 2024. Investors have turned to the precious metal as a safe‑haven asset amid growing uncertainty in U.S. politics.

Reuters has linked the gold rally to two key drivers:

1. U.S. Government Shutdown Speculation – A potential shutdown of the U.S. federal government could lead to a sharp sell‑off in risk assets, prompting a surge in gold buying. A separate Reuters piece on the U.S. “government shutdown fears” details how congressional stalemates over the fiscal year’s appropriations are widening concerns among traders.

2. Oil Price Volatility – The decline in the benchmark Brent oil price from $85.20 to $78.90 a barrel, reported in a linked Reuters story on the energy markets, has also amplified safe‑haven flows. Lower oil prices reduce risk sentiment and encourage investors to seek stable assets like gold.

U.S. Political Tensions Keep Markets on Edge

Across the border, U.S. markets had been pressured by the ongoing political impasse. The U.S. Senate had extended a temporary funding resolution that expires on October 15, but there was no guarantee that Congress would agree on a comprehensive budget before that deadline. In the interim, lawmakers risk a “government shutdown,” which could paralyze federal agencies, affect public services, and stall economic activity.

The article notes that the U.S. Treasury market has been watching the political saga closely, with the 10‑year Treasury yield hovering around 4.20 %. An uptick in yield spreads could signal growing risk sentiment, prompting further gold buying and impacting equity markets.

Global Context: Mixed Signals from Asia and Europe

Asian equities were trading mixed, with Japan’s Nikkei 225 index futures up 0.4 % and the Shanghai Composite down 0.5 %. European markets were similarly split; the Stoxx Europe 600 futures edged down 0.2 % on concerns over higher inflation and the European Central Bank’s potential rate hikes. Meanwhile, the UK’s FTSE 100 futures dipped 0.3 % as sterling weakened against the euro.

The divergent performances reflect the varying degrees to which regional markets have been exposed to U.S. political risk and commodity price swings. Notably, commodity‑heavy European indices were under pressure from the falling oil and copper prices reported in a linked Reuters piece on commodity markets.

Bottom Line for Investors

The article’s overall narrative points to a cautiously optimistic environment for Canadian equities. While the TSX futures are trending upward, the gains are tempered by the shadow of a U.S. shutdown and gold’s surge, which suggest that risk sentiment could be fragile. Traders are advised to keep a close eye on:

• U.S. budget negotiations: The next congressional vote on a permanent appropriations act is set for early next week. A prolonged stalemate could amplify market swings.
• Commodity price movements: Oil and copper are likely to continue influencing equity futures, especially in the energy and materials sectors.
• Gold’s trajectory: A sustained rally could continue to feed safe‑haven flows, dampening risk appetite for equities.

In the words of the Reuters coverage, “the Canadian market appears to be riding a wave of optimism bolstered by a gold rally, but the looming U.S. government shutdown and global commodity volatility keep a cautious tone in the background.” As investors navigate this landscape, balancing the potential upside of a robust Canadian market against the downside risks from U.S. politics and commodity swings will be key.