Futures for Canada's main stock index edged lower on Tuesday as investors were concerned about the U.S. debt deal and a decline in crude oil prices further weighed on sentiment.
The TSX gained 47.64 points to conclude Monday at 19,967.95.
June futures on the S&P/TSX index declined 0.1% Tuesday morning.
The Canadian dollar crept up 0.08 cents to 73.59 cents U.S.
I n company news, Pembina Pipeline signed an agreement with Japan's Marubeni Corp to co-develop a low-carbon ammonia supply chain from Western Canada to Asia.
RBC turned bullish on lender Canadian Western Bank and Scotiabank resumed coverage on Fortuna Silver Miners with a "sector perform rating".
Meanwhile, Alberta United Conservative Party leader Danielle Smith won a majority government in the provincial election in oil-producing province; Smith is opposed to plan by the New Democratic Party to cap oil and gas emissions, arguing it will lead to a production cut.
ON BAYSTREET
The TSX Venture Exchange gained 2.76 points Monday to 606.85.
ON WALLSTREET
Stock futures rose Tuesday after the Biden administration and Republican lawmakers reached a tentative deal on raising the U.S. debt ceiling.
Futures for the Dow Jones Industrials retreated nine points at 33,116.
Futures for the S&P 500 gained 23.5 points, or 0.6% to 4,236.75.
Futures for the NASDAQ Composite leaped 180.25 points, or 1.3%, to 14,512.75.
President Joe Biden and House Majority Leader Kevin McCarthy reached an agreement to raise the debt ceiling and avoid a default over the weekend, with Congress set to vote on the legislation as early as Wednesday. Lawmakers have not signaled that they intended to return to Capitol Hill early to work on the deal. Both Republican and Democratic support is needed for the bill agreement to pass.
The agreement comes just days before the so-called “X date” on June 5, which is the earliest date the Treasury Department has signaled the U.S. could default on debt obligations. The initial compromise was first announced on Saturday evening.
The long negotiations between the White House and congressional leaders raised concern among investors that a default on U.S. debt could take place. Wall Street has already contended with persistent inflation and a banking crisis this year.
Futures were also helped by a more than 3.8% pre-market rally by semiconductor maker Nvidia. The artificial intelligence-related stock is nearing a $1 trillion market cap — an elite marker surpassed by just a handful of stocks — after shares jumped following its strong earnings report last week.
The market was closed Monday due to Memorial Day.
Investors will also turn their attention to May jobs data out on Friday, while the April Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics will be released on Wednesday. Corporate earnings from HP Inc are set for Tuesday and Salesforce earnings are due on Wednesday.
In Japan, the Nikkei 225 gained 0.3% Tuesday, while markets in Hong Kong eked up 0.2%.
Oil prices dropped 84 cents to $71.83 U.S. a barrel.
Gold prices gained $10.70 to $1,973.80 U.S. an ounce.
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