TSX set to open lower on subdued banks earnings, US debt deal jitters

(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 and Bank of Nova Scotia 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, 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. ()

were down 124 points, or 0.37% at 12:08 a.m. ET, while were down 14.25 points, or 0.34%, and were down 43.75 points, or 0.32%. [.N]

COMMODITIES AT 7:08 a.m. ET

: $1,979.2; +0.2% [GOL/]

US crude: $74.12; +1.6% [O/R]

: $77.97; +1.5% [O/R]

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TSX market report ()

Canadian dollar and bonds report [CAD/] [CA/]

Reuters global stocks poll for Canada

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($1 = 1.3372 Canadian dollars)

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