Futures tied to Canada's resource-heavy main stock index fell on Tuesday as oil and metal prices declined, while investors weighed the implications of a potential U.S. government shutdown that could disrupt critical economic data releases.
The TSX Composite Index screamed higher 210.63 points to close Monday at 29,9971.91.
Futures fell 0.2% early Tuesday morning.
The Canadian dollar was down 0.24 cents to 71.83 cents.
In corporate developments, Imperial Oil said on Monday it would cut its workforce by about 20% by the end of 2027, part of a major restructuring that would eventually shutter most of its presence in Calgary.
Canadians are pausing coast to coast Tuesday to observe the Day of Truth and Reconciliation with their indigenous population.
ON BAYSTREET
The TSX Venture Exchange sidled up 8.89 points, or 1%, Monday to 942.84
ON WALLSTREET
Stock futures fell Tuesday as a potential U.S. government shutdown loomed. Despite the latest declines, Wall Street was headed for an unusually strong September.
Futures for the Dow Jones Industrials retreated 126 points, or 0.3%, to 46,486
Futures for the S&P 500 dipped 13.25 points, or 0.2%, at 6,700.25
Futures for the NASDAQ gave back 37 points, or 0.2%, to 24,800.75.
EchoStar soared 9% after Bloomberg News reported, citing sources, that the telecom company was in talks to sell some of its wireless spectrum to Verizon. The talks, according to the report, involve EchoStar’s AWS-3 licenses, which are used for 5G wireless.
Verizon shares were flat in the premarket.
Although shutdowns aren’t usually market-moving events, this time could be different as investors are already wary about a slowing labor market, the risk of stagflation and elevated stock valuations.
A shutdown could also prompt rating agencies to rethink the condition of U.S. credit, which was downgraded in May by Moody’s.
After a meeting between President Donald Trump and top Democrats and Republicans, Vice President JD Vance said Monday evening: “I think we’re headed to a shutdown because the Democrats won’t do the right thing.”
The Labor Department also announced Monday that the September non-farm payrolls report scheduled to release Friday will not come out if the U.S. government suspends operations.
The report is one of several upcoming key data releases that will provide crucial information about the direction of the economy ahead of the Federal Reserve’s upcoming October policy meeting. Exacerbating concerns over the shutdown was President Donald Trump’s threat over the weekend that a shutdown could result in mass firings of federal workers.
Tuesday will also bring the end of the third quarter. The broad-based index is up 7.4% quarter to date, while the NASDAQ is set to notch a nearly 11% quarterly gain. The Dow is up 1.7% over the three-month period, which would mark its fifth positive quarter in a row.
In Japan, the Nikkei 225 ditched 0.3% Tuesday, while in Hong Kong, the Hang Seng raced ahead 0.9%.
Oil prices slipped 48 cents to $62.97 U.S. a barrel.
Gold prices sank $20.40 to $3,834.80 U.S. per ounce.
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