Futures linked to Canada's main stock index tumbled on Tuesday, catching up to the brutal sell-off across global markets on Monday, triggered by recession fears in the United States.
September futures on the S&P/TSX index were down 1.8% at 6:48 a.m. ET (10:48 GMT). Global stock markets saw a rout on Monday as investors scrambled towards safe-haven assets, after weaker economic data in the U.S. last week stoked fears of a recession in the world's largest economy.
Investor sentiment was partially soothed after data on Monday showed a rebound in U.S. services sector activity in July, and comments from Federal Reserve policymakers signalled rate cuts ahead. The benchmark U.S. S&P 500 (.SPX), opens new tab and the Nasdaq (.IXIC), opens new tab each closed 3% lower on Monday. The Canadian markets were closed on account of a holiday. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), opens new tab ended 2.2% lower on Friday, logging its biggest decline since February 13.
On the commodities side, oil prices pared early gains on Tuesday to trade steady, supported by Middle East supply fears. Canadian miners will be in the spotlight as gold prices inched up, while copper deepened its losses on pessimism around global growth and weak Chinese demand. Data-wise, domestic employment figures are due on Friday that will shed more light on the country's labour market. Attention will also be on a host of Fed policymakers scheduled to speak throughout the month, against the backdrop of recession fears. Wall Street's main indexes ended sharply lower on Monday as U.S. recession worries shook global markets and drove investors out of risky assets.
In corporate news, Suncor Energy (SU.TO), opens new tab and iA Financial (IAG.TO), opens new tab among others are set to report their quarterly figures after the closing bell on Tuesday.
