TSX futures down as commodities fall on recession worries

July 05, 2022 at 07:50 am EDT

(Reuters) - Futures for Canada's resource-heavy main stock index edged lower on Tuesday as oil and metal prices slipped on mounting worries over a global economic downturn.

September futures on the S&P/TSX index were down 0.4% at 7:17 a.m. ET.

Brent crude fell more than 1%, reversing earlier gains, as concerns of a possible global recession curtailing fuel demand outweighed supply disruption fears, highlighted by an expected production cut in Norway. [O/R]

Copper prices crumbled to their lowest in 17 months as the dollar surged, making commodities priced in the U.S. currency more expensive for overseas buyers. [MET/L]

Adding to fears of a global slowdown, data showed business growth across the euro zone slowed further last month.

Separately, a key part of the U.S. Treasury yield curve briefly inverted for the first time since mid-June, reflecting investor concerns that hefty interest-rate hikes could tip the U.S. economy into a recession. [US/]

Dow e-minis were down 160 points, or 0.52% at 7:17 a.m. ET, while S&P 500 e-minis were down 21.75 points, or 0.57% and Nasdaq 100 e-minis were down 85.25 points, or 0.73%. [.N]

Statistics Canada's building permits data for May is due at 08:30 a.m. ET.

The Toronto Stock Exchange's S&P/TSX composite index ended 0.9% higher at 19,028.86 on Monday in thin trading. [.TO]

TOP STORIES [TOP/CAN]

Chinese authorities have blocked Canadian government representatives from attending the trial of Chinese-Canadian billionaire Xiao Jianhua, the Canadian embassy said on Tuesday.

Canadian National Railway said a strike by unionized signals and communications workers would end on Tuesday after the company and the International Brotherhood of Electrical Workers (IBEW) agreed to binding arbitration.

ANALYST RESEARCH HIGHLIGHTS [RCH/CA]

Bolarex Inc : TD Securities cuts to "buy" from "action list buy"

Sernova Corp : H.C. Wainwright initiates coverage with "buy" rating; target price C$6

Aurora Cannabis Inc : Cowen and Company cuts target price to C$1.85 from C$4

COMMODITIES AT 7:17 a.m. ET

Gold futures: +0.1% to $1,802.4

[GOL/]

US crude: -0.5% to $107.94

[O/R]

Brent crude: -1.6% to $111.67

[O/R]

MAJOR U.S. ECONOMIC DATA DUE ON TUESDAY