Jan 19 (Reuters) - Futures on Canada's main stock index fell Monday as global markets turned risk-averse following U.S. President Donald Trump's threat to impose tariffs on eight European nations unless the U.S. was allowed to buy Greenland.
The futures on the S&P/TSX index SXFcv1 were down 0.6% at 06:56 a.m. ET (1156 GMT).
In the latest escalation of Trump's tariff campaign, the U.S. president said on Saturday that he would levy an additional 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain starting February 1. Those tariffs would climb to 25% by June 1 if no agreement on Greenland is reached.
The announcement reignited trade war concerns and cast doubt over trade agreements the EU and Britain negotiated with the U.S. last year.
Attention now turns to the metal mining and energy sectors - both heavily weighted in Canada's commodity-rich stock index .GSPTSE - as gold XAU= and silver XAG= prices surged to all-time highs.
Meanwhile, oil prices LCOc1, CLc1 dipped on fears that a U.S.-Europe trade war could dampen global growth and demand. GOL/O/R
Investors will also monitor a key Canadian inflation report scheduled for 8.30 a.m. ET.
As U.S. markets are shut on the day for Martin Luther King Jr. Day, trading volumes are expected to be lower than usual.
The TSX closed at a record high on Friday, buoyed by rising energy shares and a new trade deal between Canada and China that could provide economic support.
In an effort to strengthen ties with Canada's second-largest trading partner after the U.S., Prime Minister Mark Carney secured an initial agreement with China to slash tariffs on electric vehicles and canola.
The deal comes as Canada seeks to diversify its trade relationships amid mounting tensions with the U.S.
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(Reporting by Ragini Mathur in Bengaluru)
((Ragini.Mathur@thomsonreuters.com;))
