Futures tied to Canada main stock index pointed modestly higher Tuesday, signaling a reset after last week’s rout as traders sifted through the latest twists in U.S.-China trade tensions.
December contracts on the S&P/TSX were up in early New York hours, reversing part of Friday’s 1.4% slide that knocked the benchmark down 414 points to 29,850.89, its steepest daily decline in six months.
The rebound comes as Canadian markets reopen following Monday’s Thanksgiving closure, giving investors their first shot to react to an uneven global tone.
The immediate catalyst for Friday’s selloff was the flare-up in trade risk after Washington floated tougher tariff measures and Beijing tightened export rules for strategically important materials.
Gold has been notching fresh records above the psychologically important 4,000 mark, a move that has fortified the TSX’s heavyweight materials cohort.
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This tailwind was visible before the long weekend and has continued into Tuesday, with investors again leaning into senior producers and royalty names.
Our earlier coverage of a Sprott metals fund debut underscored how quickly capital has chased the theme as rates ebb and macro risks multiply.
Benchmark prices have rallied toward prior peaks on supply tightness and a softer U.S. dollar, but demand uncertainty tied to China’s growth path still caps enthusiasm.
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This is why any update that clarifies Beijing’s stance on export controls or domestic stimulus lands directly in the order books for Canadian base metal names.
Corporate catalysts also matter, the Teck and Anglo merger saga has kept copper giants squarely in the Toronto spotlight this fall, sharpening the market’s sensitivity to commodity.
Crude staged a tentative rebound to start the week after plumbing multi-month lows, only to wobble again on forecasts for a larger 2026 surplus that keeps a lid on enthusiasm for producers and pipelines, even as long duration income investors continue to focus on balance sheet resilience and dividends.
Our primer on Enbridge stock remains relevant with yields elevated and growth visibility mixed.
The Canadian dollar has struggled around the 1.40 per U.S. dollar level as safe haven demand props up the greenback and markets keep pricing additional Federal Reserve easing.
A softer loonie tends to support TSX exporters but complicates inflation math at home that push pull has added noise to short-term sector rotations, particularly in consumer and industrial pockets.
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Only days ago the TSX stalled near a record as investors waited for fresh U.S. inflation signals. The speed of the reversal since then shows how fragile risk appetite remains when policy and geopolitics collide.
