Futures tracking Canada’s main stock index pointed to a slight recovery on Tuesday from a five-day selloff that was triggered by mounting worries about a global economic downturn.
The TSX Composite faltered 153.94 points to close Monday at 18,327.04.
Futures advanced 0.5% early Tuesday.
The Canadian dollar picked up 0.15 cents to 73.08 cents U.S.
The TSX has lost 5.2% so far this month and is headed for a second straight month of decline as worries about the economic impact of central bank tightening overshadowed domestic data showing an easing of inflation pressures
Bank of Canada Governor said on Monday that the central bank must hike interest rates to slow spending and give the economy time to catch up. The central bank has lifted rates by 300 basis points in just six months, with traders pricing in a another 50 bps hike next month.
ON BAYSTREET
The TSX Venture Exchange subtracted 10.67 points, or 1.9%, to 567.39.
ON WALLSTREET
Stock futures rose Tuesday, as the Dow Jones Industrial Average and S&P 500 tried to bounce back from their lowest closing levels in nearly two years.
Futures for the Dow leaped 306 points, or 1.1%, early Tuesday to 29,649.
Futures for the S&P 500 grabbed 49.25 points, or 1.3%, to 3,719.25.
Futures for the NASDAQ Composite Index popped 180.5 points, or 1.6%. at 11,496.75.
The British pound rebounded slightly after plunging to a record low against the dollar earlier in the week. Sterling traded more than 1% higher at $1.087 per dollar after hitting an all-time low of $1.0382.
The move in futures comes after five straight days of losses for stocks, with the S&P 500 closing at its lowest level since 2020. The Dow dropped more than 300 points on Monday, putting it in a bear market after falling more than 20% below its record high. The 30-stock average also posted its lowest closing level since late 2020.
Technical indicators show that the selling has been historic. According to Bespoke Investment Group, the 10-day advance decline line for the S&P 500 has hit a record low, meaning market breadth is at its worst level in at least 32 years.
Keurig Dr Pepper fell 1.5% premarket after Goldman Sachs downgraded the stock to neutral from a buy rating. The Wall Street firm said it sees increased risk to Keurig’s margins as commodity inflation, especially related to coffee, remains elevated.
Shares of Lucid Group jumped 2.7% in premarket trading after Cantor Fitzgerald initiated coverage with an overweight rating. The firm said Lucid’s luxury and premium vehicles provide greater efficiency, longer range, faster charging and more space relative to its peers.
On Tuesday, investors will get several new pieces of economic data, including September consumer confidence, August durable goods orders and July home prices. Wall Street has grown increasingly concerned that the Fed’s six-month-long inflation fight will push the economy into a recession.
In Japan, the Nikkei 225 poked up 0.5%, while in Hong Kong, the Hang Seng gathered five points.
Oil prices gained $1.03 to $77.74 U.S. a barrel.
Gold prices took on $14.90 to $1,648.30 U.S. an ounce.