CANADA STOCKS-TSX futures track rally in global peers

By Shashwat Chauhan

Oct 4 (Reuters) - Futures tracking Canada's main stock index jumped on Tuesday, in line with a solid European and Asian trading session, as a pause in bond yields increased appetite for riskier equities after last quarter's selloff on recession fears.

December futures on the S&P/TSX index were up 1.7% at 07:11 a.m. ET after TSX's biggest one-day gain since April 2020 in the previous session. It fell 4.6% in September.

Global stocks rallied for a second day, while U.S. futures pointed to a strong open after Britain's move to ditch part of its tax-cut plan and slightly paler expectations for aggressive central bank action eased investors' nerves.

Canadian government bond yields slipped, as U.S. Treasuries hovered at 3.58% after topping 4% last week, as weak U.S. manufacturing activity helped temper expectations for more hefty rate rises by the Federal Reserve.

The focus is now on U.S. job openings data due at 10 am ET for clues on the health of labor market.

Boosting futures of the resources-heavy TSX, oil prices rose about 0.7% each ahead of OPEC+ meeting to discuss supply cuts. Oil is one of Canada's major exports.

The energy sector accounts for nearly 20% on the TSX.

Gold prices firmed above the key $1,700 per ounce level as dollar, yields dipped.

Among individual shares, banking giant HSBC said it is looking to sell its wholly owned subsidiary in Canada. Its London-listed shares were up more than 3%.

CIBC cut ratings for few forest product companies to "neutral" from "outperformer". Interfor Corp, Canfor Corp, West Fraser Timber went through the rating slash.

Raymond James upgraded Dream Residential Real Estate Investment Trust to "outperform" from "market perform".

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Canadian markets directory ($1 = C$1.36) (Reporting by Shashwat Chauhan in Bengaluru; editing by Uttaresh.V)