Futures tied to Canada's main stock index fell on Tuesday, mirroring Wall Street peers, as concerns over erratic U.S. trade policies clouded investor sentiment.
The TSX Composite Index popped 213.91 points to conclude Monday at 26,388.96.
Futures subtracted 0.5% Tuesday.
The Canadian dollar was down 0.12 cents to 72.81 cents U.S. On Monday, the White House said that U.S. President Donald Trump and Chinese leader Xi Jinping will probably speak this week to iron out trade issues, days after Trump accused Beijing of violating an agreement to roll back tariffs and trade restrictions. Markets will closely monitor the call between the two leaders, as ongoing tariff-induced trade tensions between the world's two largest economies have caused significant volatility in global equities and businesses. Additionally, the Trump administration pushed countries for their best trade offers by Wednesday, a sign that trade negotiations were on the horizon.
Meanwhile, the Paris-based Organization for Economic Cooperation and Development trimmed its global growth outlook and said the trade war was taking a bigger toll on the U.S. economy than before.
ON BAYSTREET
The TSX Venture Exchange sprang 12.29 points, or 1.8%, Monday to 706.69.
ON WALLSTREET
Stock futures slipped on Tuesday, putting Wall Street on track to give up some of the modest gains seen in the first session of June, as growth concerns increase.
Futures for the Dow Jones Industrials slid 110 points, or 0.3% to 42,264. Futures for the S&P 500 index let go of 12 points, or 0.2%, to 5,935.25. Futures for the NASDAQ faltered 21 points to 21,513.50.
In individual stocks, Bumble lost some of its buzz, after analysts at JPMorgan downgraded the dating app to underweight from neutral.
Tuesday’s declines follow the Organization for Economic Co-operation and Development cutting its U.S. growth outlook. The OECD now sees the U.S. economy expanding by just 1.6%, down from 2.2%. Beijing countered President Donald Trump’s accusations that it had violated a temporary trade agreement. Investors had grown hopeful that the two countries could work out a trade deal, but this latest development points to negotiations taking a turn for the worse. Meanwhile, the European Union criticized Trump’s intention to double steel tariffs to 50%, saying that such a move “undermines” its own negotiations with the U.S. An EU spokesperson said that the bloc was “prepared to impose countermeasures.”
In Japan, the Nikkei 225 index ditched 0.1% Tuesday, while in Hong Kong, the Hang Seng regrouped 1.5%.
Oil prices gained 42 cents to $62.94 U.S. a barrel.
Gold prices dipped $15.30 to $3,355.30 U.S. an ounce.
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