Futures tracking Canada's resources-heavy stock index fell on Wednesday, tracking weakness in commodity prices, as the dollar steadied ahead of keenly awaited U.S. inflation data and the outcome of midterm elections.
Futures on the S&P/TSX index were down 0.2% by 7:15 a.m. ET. U.S. futures were mixed as midterm election results rolled in.
Control of Congress was up for grabs with several races too tight to call, leaving it unclear whether Republicans would crack Democrats' tenuous hold on power.
Historically, stocks tend to do better under a split government when a Democrat is in the White House, with investors attributing some of that performance to political gridlock that prevents drastic policy changes.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) closed at its highest level in nearly two months on Tuesday, with gains led by the materials sector on higher metal prices. The advance could stall as gold and base metal prices slipped against a stronger dollar. Meanhwile, crude , prices slipped 0.6% after industry data showed that U.S. crude stockpiles rose more than expected and on demand concerns from China.
On the earnings front, telecom giant Rogers Communications (RCIb.TO) reported an increase in quarterly revenue, benefiting from higher roaming charges due to a rebound in international travel and customers opting for pricier plans.
