U.S. stock futures pointed lower on Tuesday following and Fed Chairman Ben Bernanke’s warning that the timing of an economic recovery was uncertain, while Bank of Montreal announced it is buying the Canadian life insurance business American International Group Inc. for $375 million in cash.

The timing and strength of the global economic recovery “are highly uncertain,” Federal Reserve Chairman Ben Bernanke said said in a speech at the London School of Economics.

Here at home, Canada’s trade balance with the world fell to $1.3 billion in November from $2.3 billion in October, its lowest level in more than a decade, Statistics Canada reported.

Both exports and imports declined, driven by energy products, as crude petroleum prices continued to fall.

The Canadian dollar opened at US81.68¢ on Tuesday, down 0.60 of a cent from Monday’s close.

In commodities news, light, sweet crude fell US$1.17 to US$36.42 in Tuesday electronic premarket trading on the New York Mercantile Exchange.

In earnings news, Alcoa kicked fourth-quarter earnings season after Monday’s close, reporting a US$1.2 billion loss for the quarter.

Lexmark International issued a profit warning.

Overseas, Japanese stocks were rattled on Tuesday, with the Nikkei 225 shedding 4.8% after a three-day hiatus.

The FTSE 100 dropped 1.7% in mid-morning trade, led lower by metals producers and banks.


Continued deterioration in commodity prices dragged down materials companies on Monday, pulling the Toronto Stock Exchange down nearly 300 points.

The S&P/TSX composite index dropped 291.85 points, or 3.2%, to finish at 8,793.33.


The TSX Venture exchange moved continuously lower throughout the day, finishing at 878.35 points, down 30.55, or 3.4%.

Stock markets south of the border had a similarly dismal day, with stocks of financial companies hit the hardest.

The Dow Jones industrial average fell 125.21 points, or 1.5%, to 8,473.97.

Shares of Citigroup Inc. tumbled US$1.15, or 17%, to close at US$5.60 on the New York Stock Exchange, on continued reports that the company may sell control of its Smith Barney retail brokerage unit to Morgan Stanley.

The S&P 500 index closed down fell 20.09 points, or 2.3%, to 870.26.

The Nasdaq composite moved lower by 32.8 points, or 2.1%, to 1,538.79.

IE