Futures for Canada’s main stock index slipped on Tuesday as global investors shifted away from risk ahead of key U.S. economic data releases and earnings from AI heavyweight Nvidia. December futures on the S&P/TSX index were down 0.49% as of 05:45 a.m. ET, following a 0.8% drop in the benchmark S&P/TSX composite index on Monday — its lowest level in 10 days. Renewed worries over the sustainability of AI-driven spending and fading expectations of an imminent Federal Reserve rate cut weighed heavily on sentiment.
Political developments added to the cautious mood after Prime Minister Mark Carney narrowly secured parliamentary approval for his first federal budget, averting a potential second election in under a year. The budget doubles Canada’s fiscal deficit to counter U.S. tariffs while boosting spending on defense and housing — a bold growth-oriented move despite inflation easing to 2.2% in October. While stable prices offer policymakers some comfort, investors remain wary of the budget’s aggressive deficit expansion.
Commodities also dragged futures lower, with gold falling 0.3% to a one-week low of $4,033.29 per ounce amid reduced expectations of a Fed rate cut. Copper continued its decline under pressure from a stronger U.S. dollar, while oil slipped nearly 1%. In corporate news, the Financial Times reported that activist investor Elliott Management has amassed a sizable stake in Barrick Mining, placing it among the company’s top 10 shareholders.
Pic Courtesy: google/ images are subject to copyright
