Canada's main stock index inched lower on Tuesday, dragged down by mining and oil companies ahead of the release of plans on domestic fiscal spending and a US monetary policy decision.
By 10:16 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was 0.1% lower at 20,731.34.
Canadian Prime Minister Justin Trudeau's government will outline new fiscal and economic forecasts later in the day as inflation surges and some business groups and opposition politicians call for more spending restraint.
The so-called fall economic update will be released at 4 p.m. ET (1900 GMT) and is also likely to include some new spending.
Market sentiment globally was downbeat as US producer prices came in hotter than expected, firming bets of a faster withdrawal of policy support by the Federal Reserve. The US central bank will release its policy decision on Wednesday.
TSX slips as energy stocks weigh, Kinross slides
"Today looks to be a risk off," said Barry Schwartz, chief investment officer at Baskin Wealth Management.
"Inflation numbers in the US are hotter than expected and worries about COVID seem to be never ending. People should be prepared for a bumpy sleigh ride into the end of the year."
The energy sector dropped 0.4% as US crude prices were down 1.1% a barrel and Brent crude lost 1.2%, hurt by concerns about the fast-spreading Omicron variant of the coronavirus.
The materials sector, which includes precious and base metals miners and fertilizer companies, lost 0.2% as gold futures fell 0.9% to $1,771.1 an ounce.
Bank of Nova Scotia said on Monday it would pause its plan for employees working remotely to return to its Toronto head office starting on Jan. 17 due to concerns about the Omicron variant.
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