Futures Flat Ahead of New Tariffs

Futures tied to Canada's main stock index were subdued on Tuesday as investors weighed the potential implications of new U.S. tariffs on steel and aluminum imports.The TSX leaped 217.32 points to close Monday at 25,660.23. Futures were down 0.03% early Tuesday. The Canadian dollar inched up 0.05 cents to 69.80 cents U.S. early Tuesday. U.S. President Donald Trump raised tariffs on steel and aluminum imports on Monday to a flat 25% without exceptions, aiming to support U.S. industries but risking trade conflicts. The new duties take effect on March 4, a White House official confirmed.Trump has also promised to announce global reciprocal tariffs within days.In corporate news, cinema chain Cineplex missed fourth-quarter revenue estimates.On the economic calendar, Statistics Canada reported building permits rose 11% to $13.1 billion in December.ON BAYSTREET The TSX Venture Exchange gained 3.66 points Monday to 642.94. ON WALLSTREET U.S. stock futures traded lower Tuesday as investors looked ahead to testimony from Federal Reserve Chairman Jerome Powell while awaiting key inflation reports due later in the week.Futures for the Dow Jones Industrials capsized 91 points, or 0.2% to 44,489.Futures for the S&P 500 fell back 17.75 points, or 0.3%, to 6,071.Futures for the tech-heavy NASDAQ faded 95 points, or 0.4%, to 21,751.50. The central bank leader first will address the Senate Banking Committee on Tuesday, followed by an appearance the next day in front of the House Financial Services Committee. Both events will start at 10 a.m. ET and will begin with prepared remarks from Powell.Powell’s testimony comes at a volatile time in Washington with President Donald Trump favoring tariffs against U.S. trading partners and with mixed messages coming from the administration on its approach to the Fed.Shortly after Trump took office, he said he would demand lower interest rates. However, Treasury Secretary Scott Bessent said last week that the White House would not be pressuring the Fed to cut its benchmark borrowing rate and instead will be looking for the 10-year Treasury yield to fall as the administration institutes deregulation and spending cuts to control inflation.In Hong Kong, the Hang Seng fell 1.1%, while markets had the day off in Japan. Oil prices surged 98 to $73.30 U.S. a barrel. Gold prices ducked 7.2 to $2,927.20 U.S. an ounce.