Futures tracking Canada's main stock index tumbled Tuesday as accelerating domestic inflation and mounting bets on a hawkish Federal Reserve battered investor sentiment. Contracts on the commodity-heavy S&P/TSX index sank 1.2% by 7:05 a.m. in New York, after the underlying benchmark snapped a three-day losing streak on Monday to close up 0.4% at 35,002.18. Canada's annual inflation rate accelerated to a 29-month high of 3.2%, complicating the outlook for the Bank of Canada just a week after the country's banking regulator lowered capital requirements to boost liquidity and stimulate lending. Gold prices slid nearly 2% as the U.S. dollar surged to a one-year high, further dragging the resource-heavy index. Traders are now pricing in two Federal Reserve interest rate increases this year, according to the CME FedWatch tool, fueled by post-meeting commentary from Fed officials warning of inflation risks tied to the recent Iran-war energy spike. In corporate news, Shopify plans to ban all vaping products from its e-commerce platform as early as this week, Reuters reported, citing people familiar with the matter.
Shopify IncShopify plans to ban all vaping products from its e-commerce platform, which could reduce sales and merchant activity.