Futures for Canada's main stock index inched higher on Tuesday following a tech-led selloff a day earlier, while investors looked ahead to the week's bank earnings for insights on the domestic economy.
The TSX slumped 281 points to conclude Monday to 31,101.78.
December futures were ahead 0.1% Tuesday.
The Canadian dollar faded 0.06 cents to 71.36 cents U.S.
Kicking off the bank earnings week, Bank of Nova Scotia reported a rise in fourth-quarter profit, helped by higher interest income.
Investors are awaiting results from the rest of the big six Canadian banks — Royal Bank of Canada, TD Bank, BMO, CIBC and National Bank.
The six banks have gained nearly 31% on average this year, compared with a 26% rise in the broader index.
In other corporate news, life insurer Sun Life Financial announced it will issue $1 billion worth of debentures in Canada, while the Bank of Canada upgraded the price target on plane maker Bombardier to $263 from $234.
ON BAYSTREET
The TSX Venture Exchanged gained 2.57 points Monday, to 939.91.
ON WALLSTREET
Stock futures rose slightly on Tuesday, as traders tried to recover from a weak start to December Trading.
Futures for the Dow Jones Industrials restocked 42 points, or 0.1%, to 47,391
Futures for the S&P 500 recovered 16.5 points, or 0.2%, to 6,743.25.
Futures for the NASDAQ regained 93.25 points, or 0.4%, to 25,484.50
The major U.S. indexes began the week in the red, ending five-day win streaks on Monday. Risk-off sentiment has pressured the bull market in recent weeks as worries of persistent inflation, elevated valuations and returns on artificial intelligence spending weigh on investors.
The slump in cryptocurrencies intensified during the previous session as bitcoin dropped 6% and recorded its worst day since March.
Crypto stocks Coinbase and Robinhood each declined more than 4%. November’s standout “Magnificent Seven” stock, Google parent Alphabet, took back some gains and fell 1.7%, while other tech heavy hitters Palantir and Broadcom also declined. Gold prices and bond yields rose, meanwhile.
Although November was a downbeat month for tech stocks, and saw both the S&P 500 and 30-stock Dow eke out small gains, investors are watching for catalysts that could lead to a year-end rally.
Traders are currently optimistic that the Federal Reserve will announce an interest rate cut on Dec. 10 at conclusion of its next policy meeting. Markets are pricing an 87.6% chance of a cut during the upcoming meeting, which is much higher than the odds from mid-November.
December tends to be a strong month for the broader market. The S&P 500 averages a gain of more than 1% in December, making it the third-best month of the year for the benchmark in records going back to 1950, according to the Stock Trader’s Almanac.
Overseas, the Nikkei 225 in Japan inched up 0.17 points, while in Hong Kong, the Hang Seng Index edged ahead 0.2%.
Oil prices sagged 20 cents to $59.12
Gold prices dropped $37.70 to $4,237.10.
