December futures on the S&P/TSX index was down 0.4% by 0712 a.m. ET (1112 GMT).

The materials sub-index appeared set to take a hit as prices of most metals, including gold and copper, slipped after traders bet on the prospects of a hawkish U.S. Federal Reserve.

The dollar scaled fresh 11-month highs against major peers after the U.S. government avoided a partial shutdown while the manufacturing data fuelled expectations the Fed will keep rates higher for longer.

Oil prices also slipped to hover near a three-week low hit in the previous session.

U.S. stock index futures slipped on Tuesday, with investors awaiting Job Openings and Labor Turnover Survey (JOLTS) at 10 a.m. ET, as well as a slew of key employment numbers throughout the week.

The Toronto Stock Exchange's S&P/TSX composite index ended Monday down 364.09 points, or 1.86%, at 19,177.18, hitting its lowest levels since October 2022 on recession fears and lower commodity prices.

In corporate news, Canadian investment firm Brookfield is buying the renewable energy division of Banks Group.

Lundin Mining Chief Executive Officer Peter Rockandel to step down on Dec. 31.

COMMODITIES AT 7:12 a.m. ET

Gold futures: $1,833; -0.3%

US crude: $88.37; -0.5%

Brent crude: $90.13; -0.6%

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($1= C$1.3723)

(Reporting by Khushi Singh in Bengaluru; Editing by Sherry Jacob-Phillips)