Canada's main stock index was set to fall for a fourth session on Tuesday as weaker metal prices weighed on mining stocks, while investors eyed upcoming central bank meetings that will likely signal an end to easy monetary policy.
At 9:52 a.m. ET (14:52 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 319.19 points, or 1.55%, at 20,252.11.
Mining and material stocks sank 1% as gold and base metal prices declined, weighed down by rising bond yields.
Technology stocks were the worst performers in early trade, dropping 2.7% as investors discounted the value of future earnings against rising bond yields. The sector hovered around its lowest level since November 2020.
Bond yields rose ahead of monetary policy meetings in Canada and the United States due on Wednesday, where both central banks are expected to outline plans to tighten policy in the face of rising inflation.
Jitters over the US Federal Reserve hawkishness in particular have dented equity markets in recent weeks.
"The stock market is overreacting to Federal Reserve rate hike uncertainty and many investors are assuming that higher interest rates will lead to a prolonged stock market downturn," said Julian Koski, chief investment officer at New Age Alpha, an asset management firm.
"The Fed may raise interest rates, but business leaders often pivot and are able to navigate higher interest rates and still increase profits."
The TSX posted no new 52-week highs and one new low.
Across Canadian issues, there was one new 52-week high and 28 new lows, with total volume of 49.53 million shares.