March futures on the S&P/TSX index were down 0.6% at 7:14 a.m. ET (12:14 GMT).

A firmer dollar and higher U.S. Treasury yields pulled prices of gold and copper down, although copper losses were capped by stimulus hopes in China. [GOL/] [MET/L]

A December reading of domestic inflation data is due at 8:30 a.m. ET and could provide potential cues on when the Bank of Canada could start cutting borrowing costs.

On a monthly basis, CPI is expected to contract 0.3% in December versus a 0.1% growth in November, according to a Reuters poll of economists.

Money markets are currently pricing-in almost 83% chance of a rate cut from the BoC in April, with a 17% probability of no rate change.

Oil prices rose on Tuesday as investors weighed the impact of escalating tensions in the Middle East. [O/R]

U.S. futures ticked lower on Tuesday after Apple and Tesla shed 2% each, while investors gauged results from big U.S. banks to assess the health of capital markets and dealmaking. [.N]

The Toronto Stock Exchange's S&P/TSX composite index ended higher at 21,061.88 on Monday, stopping just short of the 20-month high it notched last Monday. [.TO]

On the companies front, Canadian miner First Quantum Minerals on Monday, said it plans to conserve capital after it was forced to halt production at its Cobre Panama copper mine.

U.S.-listed shares of Barrick Gold were down over 2% in premarket trading, after it said its all-in-sustaining costs (AISC) per ounce of gold in the fourth quarter rose from the previous quarter.

COMMODITIES AT 7:14 a.m. ET

Gold futures: $2,042.8; -0.4% [GOL/]

US crude: $72.89; +0.3% [O/R]

Brent crude: $78.68; +0.7% [O/R]

(Reporting by Purvi Agarwal in Bengaluru; Editing by Tasim Zahid)