(Reuters) - Canada's main stock index futures edged lower on Wednesday tracking a somber mood across markets on prolonged U.S. debt deal talks, while subdued earnings from two major domestic lenders also weighed on sentiment.
Bank of Montreal (TSX:BMO) and Bank of Nova Scotia (TSX:BNS) reported lower adjusted earnings at home as the lenders set aside more rainy day funds amid economic uncertainty. U.S.- listed shares of the banks were down before the bell.
Global market sentiment was dour as investors were risk-off, with just over a week left for the U.S. to lift its debt ceiling limit and avoid a catastrophic default. [MKTS/GLOB]
June futures on the S&P/TSX index were down 0.6% at 07:08 a.m. ET (11:04 GMT).
However, contracts tied to oil prices climbed higher, supported by speculations of tighter supply, while gold prices ticked up as market uncertainty lifted appeal for the safe-haven asset. [GOL/] [O/R]
Elsewhere, the UK competition watchdog said it had provisionally found that five banks, including the Royal Bank of Canada (TSX:RY), broke UK competition law by exchanging sensitive information on government bonds in one-to-one online chats.
The Toronto Stock Exchange's S&P/TSX composite index ended 1% lower on Tuesday, dragged down by technology, materials and industrial sectors. (TO)
Dow e-minis were down 124 points, or 0.37% at 12:08 a.m. ET, while S&P 500 e-minis were down 14.25 points, or 0.34%, and Nasdaq 100 e-minis were down 43.75 points, or 0.32%. [.N]
COMMODITIES AT 7:08 a.m. ET
Gold futures: $1,979.2; +0.2% [GOL/]
US crude: $74.12; +1.6% [O/R]
Brent crude: $77.97; +1.5% [O/R]
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($1 = 1.3372 Canadian dollars)