12:14 PM EDT, 09/10/2024 (MT Newswires) -- The TSX is down 218 points at midday after a sharp rebound on Monday, as investors prepare for a U.S. consumer inflation which some see as critical for determining the size of an interest rate cut by the Feds. Bank of Canada Governor Tiff Macklem also said global trade disruptions could make it difficult for the Bank to consistently meet its 2% inflation target.

Energy, down near 3%, is the biggest decliner, followed by telecoms, down 1%.

Oil prices weakened early on Tuesday with the market again focusing on demand concerns as China's economy weakens. OPEC also lowered its demand forecast for a second-straight month, and Tropical Storm Francine forced the closure of some Gulf of Mexico platforms, cutting into supply.

Gold traded higher for a second day with the dollar and treasury yields little changed ahead of an expected cut to U.S. interest rates next week.

Natural gas moved higher as Tropical Storm Francine forces the evacuation of producing platforms in the Gulf of Mexico.

In a speech to the Canada-UK Chamber of Commerce in London, UK, today Governor Tiff Macklem, said global trade disruptions could make it harder for the Bank of Canada to consistently meet its 2% inflation target, and added it faces a challenge in reviving economic growth while also dealing with high prices.

"The rewiring of global trade will likely lead to more supply shocks in the future," Macklem said. "These disruptions will affect businesses and jobs, and they could drive up inflation. Trade disruptions may also mean that inflation will be more volatile."