(Reuters) – Futures tied to Canada’s main stock index rose on Tuesday, as investors took a pause after worries around a trade war with the U.S. sent the TSX to a four-month low in the previous session.
March futures on the S&P/TSX index were up 0.4% at 6:54 a.m. ET (1054 GMT).
Canada’s benchmark index was dragged by declines for technology and metal mining shares on Monday, as it joined a global market selloff led by a 4% slump in Wall Street’s tech-heavy Nasdaq.
On Tuesday, investors in most markets, including in the U.S. and Europe, took a breather.
U.S. President Donald Trump’s ever-evolving levies on key trade partners such as Canada and Mexico have triggered risks of recession for all three North American countries.
In commodities, oil prices pared earlier losses to rise during trade, helped by weakness in the U.S. dollar. But gains were capped as concerns mounted over a potential U.S. recession and the impact of tariffs on global economic growth. [O/R]
Gold prices rose, supported by safe-haven flows, while attention was on U.S. inflation data. [GOL/]
All eyes are on the Bank of Canada’s monetary policy decision on Wednesday, with traders expecting the central bank to provide additional support to the Canadian economy by cutting interest rates by 25 basis points.
In corporate news, Canada’s Alimentation Couche-Tard said it is confident there is a “clear path” to overcome U.S. regulatory hurdles in its proposed $47 billion acquisition of Japan’s Seven & i.
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($1 = 1.4412 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Leroy Leo)
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