Trade War Escalation Drives TSX Futures Down

Futures tracking Canadian stocks fell on Wednesday due to concerns over the ongoing trade war and inflation fears. The US imposed new trade restrictions on Canada, banning imports of various goods including alcoholic beverages, motorcycles, and dairy products.

These measures follow a 50% tariff on about $20 billion worth of Canadian goods last month, as well as retaliatory tariffs from Canada.

The escalating tensions in the Middle East pushed oil prices higher, rekindling inflation concerns ahead of Friday's US CPI data. This has put pressure on credit-sensitive stocks, including major banks, which are expected to face rate hikes in both Canada and the US.