Stocks Set to Plunge on Oil Price Tumble

Bay, Cenovus in Focus

Futures pointed to a lower opening for Canada's main stock index on Tuesday as crude prices fell on slowing global demand outlook, while a looming U.S. tariff deadline on Chinese goods weighed on sentiment.

The TSX Composite Index fell 46.12 points to close Monday at 16,950.85

The Canadian dollar slid 0.05 cents U.S. to 75.48 cents early Tuesday

December futures slumped 0.4% Tuesday.

Senior U.S. and Canadian officials were set to fly to Mexico City to work on the final changes to a languishing North American trade pact that could clear the way for a vote in the U.S. Congress before the end of the year.

Hudson's Bay Co reported a 2.3% fall in quarterly revenue, as the department store operator struggled to attract shoppers to its Saks Fifth Avenue and namesake stores.

Cenovus Energy said it would spend nearly a quarter more in 2020, after Alberta lifted some curtailments on new oil wells last month.

Enbridge Inc said on Monday that a revised environmental statement from the state of Minnesota's commerce department concludes that replacing the aging Line 3 oil pipeline would not introduce risks for Lake Superior in the case of a spill.

Canaccord Genuity raises the target price on Gibson Energy to $30.00 from $28.00

ON BAYSTREET

The TSX Venture Exchange slid 0.33 points Monday to 537.49

ON WALLSTREET

U.S. stock index futures fell on Tuesday after a report from the South China Morning Post said China and the U.S. are unlikely to reach a trade deal this week.

Futures for the Dow Jones Industrials dropped 106 points, or 0.4%, Tuesday to 27,796.

Futures for the S&P 500 fell 9.25 points, or 0.3%, at 3,125.25.

The NASDAQ Composite sank 31.5 points, or 0.4%, to 8,324.50.

The Morning Post report said chances of a deal on that front are falling as the U.S. focuses on finalizing a trade deal with Mexico and Canada. Sources told media outlets on Monday that House Democrats and the Trump administration are close to a tentative deal that would replace North American Free Trade Agreement.

However, the Morning Post report added that additional tariffs on Chinese goods are not expected to take effect. The U.S. had set Dec. 15 as a deadline for both sides to reach a so-called phase one trade deal. If a deal was not reached by then, the U.S. would implement more tariffs targeting China.

Trade bellwether Apple was down 0.8%, and Boeing was down 0.5%.

Investors will also closely monitor the Federal Reserve as the central bank kicks off its last two-day monetary policy meeting of the year. The Fed is expected to hold rates steady.

Overseas, in Japan, the Nikkei 225 fell 0.1% Tuesday, while in Hong Kong, the Hang Seng Index backtracked 0.2%.

Oil prices dipped 36 cents at $58.66 U.S. a barrel.

Gold prices hiked $6.60 to $1,471.50 U.S. an ounce.