Futures tracking Canada’s main stock index were somewhat quiet on Tuesday, as investor focus turned towards earnings reports from domestic banks against the backdrop of worries about a faster tightening in monetary policy and a potential recession.

The TSX fell 136.46 points to conclude Monday at 19,974.92.

September futures for the TSX handed over 0.1% on Tuesday.

The Canadian dollar gained 0.14 cents to 76.77 cents U.S.

Bank of Nova Scotia kicked off earnings for Toronto Exchange’s heavily weighted financial sector after the country’s third-largest lender reported quarterly profit a touch below estimates, but earnings rose on lending strength in international unit.

Canadian banks are expected to post declines in quarterly profits on average as a murky economic outlook drives up provisions for credit losses, while market turmoil pressures capital markets and wealth management results.

ON BAYSTREET

The TSX Venture Exchange lost 7.21 points, or 1.1%, Monday to 642.70.

ON WALLSTREET

Stock futures inched higher Tuesday as the market tried to recover from its worst day since June.

Futures for the Dow Jones Industrials docked four points early Tuesday to 33,052.

Futures for the S&P 500 let go of 0.25 points to 4,141

Futures for the NASDAQ Composite took on one point to 12,910.75.

Palo Alto Networks surged in the pre-market on the back of strong quarterly results, while Zoom Video shares slumped after the video conferencing company lowered its full-year forecast.

Wall Street is coming off a downbeat session, as a summer rally continued to fade amid mounting rate hike concerns.

This sentiment will continue to put pressure on big tech and consumer discretionary stocks, experts said. Investors expect another round of hawkish pushback from Federal Reserve Chair Jerome Powell when he speaks Friday at the central bank’s annual Jackson Hole economic symposium.

Earnings season continues Tuesday with results from Macy’s, Nordstrom and Dick’s Sporting Goods. July new home sales will also be reported, along with August manufacturing PMI and the August Richmond Fed survey.

In Japan, the Nikkei 225 index settled 1.2%, while in Hong Kong, the Hang Seng index dipped 0.8%,

Oil prices gained $1.57 to $91.93 U.S. a barrel.

Gold prices took on $1.80 to $1,750.20 U.S. an ounce.

Stock Averages to Inch Higher After Disastrous Monday

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