Futures tied to Canada's main stock index edged lower on Tuesday, as U.S. President Donald Trump's fresh tariff threats renewed trade war fears, while investors awaited the Federal Reserve's monetary policy decision.
The TSX Composite Index lost 77.99 points by the end of Monday to 24,953.52.
June futures were down 0.1% Tuesday.
The Canadian dollar moved ahead 0.1 cents to 72.44 cents U.S.
The governors of six U.S. states said on Monday they have invited Canadian provincial leaders to discuss the impact of the tariffs while being critical of the measures taken by the U.S. president.
Separately, Prime Minister Mark Carney said last week he was expecting "difficult but constructive" talks with Trump on Tuesday.
The focus will be on the Fed's two-day meeting, scheduled to start later in the day, with the central bank widely expected to stay put on interest rates. Investors will closely monitor policymakers' comments for any hints of potential monetary policy easing this year.
In the economic docket, our merchandise trade, Canada's merchandise exports decreased 0.2% in March, while imports were down 1.5%.
As a result, Canada's merchandise trade deficit with the world narrowed from $1.4 billion in February to $506 million in March.
In another hour or so, the IVEY School of Business comes out with its PMI Report for April.
ON BAYSTREET
The TSX Venture Exchange edged up 0.36 points Monday to 656.04.
ON WALLSTREET
Stock futures took a header Tuesday, as investors awaited the start of the Federal Reserve’s first policy meeting since President Donald Trump announced “reciprocal” tariffs in early April.
Futures for the Dow Jones Industrials lost 255 points, or 0.6% to 41,064.
Futures for the S&P 500 index slipped 43 points, or 0.8%, to 5,628.75
Futures for the NASDAQ jettisoned 203 points, or 1%, to 19,852.50
During Monday’s session, the S&P 500 fell 0.6% to snap its nine-day rally — its longest winning streak since 2004. The tech-heavy NASDAQ Composite dropped 0.7%, while the Dow slipped 0.2%.
Tariff uncertainty continues to weigh on the markets. Trump is scheduled for meetings with Prime Minister Mark Carney on Tuesday, marking the start of negotiations between the two leaders since Carney assumed office in March.
Investors are now keeping a close eye on the Fed’s two-day policy meeting set to kick off on Tuesday, followed by an announcement on rates Wednesday afternoon. Although fed funds futures trading suggests just a 2.7% chance of the central bank cutting rates, traders will be listening for Fed Chair Jerome Powell’s comments on his economic outlook.
In individual stocks, Doordash announced a $1.2-billion SevenRooms deal, after missing revenue expectations.
In Hong Kong, the Hang Seng gained 0.7%, while markets in Japan were closed Tuesday for holiday.
Oil prices took on $1.34 to $58.47 U.S. a barrel.
Gold prices jumped $61.90 to $3,384.20 U.S. an ounce.
