Futures tracking Canada's financials-heavy stock index edged higher on Tuesday, as investors weighed positive quarterly bank earnings and trade tensions with the U.S.
The TSX climbed 94.11 points to close Monday at 36,714.34.
September futures gained 0.2% Tuesday.
The Canadian dollar tailed off 0.10 cents to 72.15 cents U.S.
BMO Financial reported a rise in third-quarter profit on Tuesday, driven by strong performance in its capital markets business.
Bank of Nova Scotia also posted a rise in third-quarter profit, helped by higher interest income.
The results add to a broader rally in bank stocks, which have outperformed the TSX this year. The financial sector hit its highest level in eight years earlier this month.
Focus is also on U.S.-Canada trade tensions after President Donald Trump on Monday threatened to raise U.S. tariffs on all cars, trucks and automotive parts from Canada to 50% starting January 1, 2027 — escalating a trade fight after negotiations collapsed last week.
The deal on the table would have cut the top-line tariff rate on Canadian cars and light-duty trucks to 15% from 25% and the tariffs on aluminum and steel to 25% from 50%.
ON BAYSTREET
The TSX Venture Exchange jumped 5.56 points to 993.93.
ON WALLSTREET
U.S. equity futures rose on Tuesday after the S&P 500 posted a losing session as investors turned cautious ahead of Nvidia’s earnings and a key inflation report due later this week.
Futures for the Dow Jones Industrials vaulted 218 points, or 0.4%, to 53,707.
Futures for the S&P 500 surged 28.75 points, or 0.4%, to 7,698.50.
Investors were taking some risk off the table as they continued to digest last week’s pullback and brace for Nvidia earnings this week. The chip giant’s quarterly report is due on Wednesday after the closing bell.
Futures for the NASDAQ Composite hiked 232.25 points, or 0.8%, to 29,338.
U.S. bond yields continued their decline Tuesday after reports the Treasury Department could use its $1 trillion General Account to fund its plans to ramp up government bond purchases. The U.S. 10-year Treasury was last down more than three basis points at 4.666%.
In Japan, the Nikkei 225 index regained 0.5% Tuesday, while in Hong Kong, the Hang Seng settled 0.02%.
Oil prices sank $2.69 to $82.32 U.S. a barrel.
Gold prices lost $2.20 to $4,695.90 U.S an ounce.
