Nov 4 (Reuters) - Canada's main stock index slid over 1%

on Tuesday and was at its weakest since late September with

investors cashing in gains and bracing for the budget due

shortly, amid a global risk-off mood.

At 9:50 a.m. ET, Toronto's S&P/TSX composite index

dropped 1.3% to 29,891.04 points - its lowest since September

26.

Canada's Prime Minister Mark Carney is set to unveil his

new budget that will roll-out a major stimulus to wean the

country off its reliance on the U.S. - even as economists warn

it could deliver the largest deficit since the pandemic.

The plan debuts a split between operating and capital

outlays, targets an operating balance within three years, and

projects debt-to-GDP on a downward track.

A report by the Global and Mail said Canada's budget will

include a C$50 billion ($35.65 billion) local infrastructure

fund.

"Budgets in general have been very difficult to manage.

We're entering a new era of political uncertainty that just adds

more volatility to the market," said Jason Barsema, president of

Halo Investing.

E-commerce company Shopify's ( SHOP ) third-quarter profit

took a hit from higher costs on the research and development of

artificial intelligence features. Its shares edged up 0.3%.

Consumer staples was the only sector in the

green.

"In Canada, volumes really started to pick up in defensive

oriented products. What that tells you is people are willing to

put capital to work. We see that as a good sign between Canada

and US tensions," Barsema added.

Despite a recent steady rally, sentiment remained fragile in

Canada, where the downturn in the manufacturing sector showed

signs of easing in October, though the PMI remained below the

50-mark, signaling continued contraction.

Weakness in commodity markets also added to the pressure,

with copper miners dropping 2.7%, as prices of the

red metal posted their biggest single-day drop in three weeks.

Among other share moves, Thomson Reuters ( TMSOF ) reported

higher third-quarter revenue, while reaffirming its full-year

2025 guidance. However, shares of the content and technology

company fell 2.6%.

Energy Fuels plunged 14%, while Pet Valu Holdings ( PTVLF )

dropped 12% after their third-quarter results.