TSX Futures Slip Amid Trade Uncertainty, Bank Reserve Increases

Futures for Canada's main stock index, the S&P/TSX Composite, retreated slightly after reaching record highs earlier in the week, as investors remained cautious amid ongoing uncertainties around U.S. trade negotiations and a debated U.S. tax bill. The index had experienced a multi-day winning streak, the longest since 2021, driven by gains in metal mining shares and optimism over easing trade tensions. However, concerns linger due to the upcoming expiration of President Trump's tariff respite and divisions within the U.S. Congress over the tax bill, which could impact economic stability. Canada's big banks have bolstered loan loss reserves in anticipation of trade-related risks, while the Group of Seven finance ministers met in Canada, seeking progress on trade despite challenges posed by the U.S. administration's stance. Commodity prices, including gold and oil, showed gains amidst market volatility, and corporate activity included a major bid for Brookfield's student accommodation platform Livensa. Meanwhile, U.S. stock futures declined, pressured by rising Treasury yields and trade concerns, with investors closely watching Federal Reserve commentary and global trade developments, including resumed talks with Japan and warnings from China about U.S. export controls.