Canadian index futures held steady Wednesday after the S&P/TSX composite suffered its steepest decline in two months. The benchmark closed Tuesday down 1% at 32,750.28, retreating from a recent all-time peak. Trading was driven by renewed U.S.-Europe trade tensions and a spike in Japanese bond yields ahead of a snap election.

Losses were cushioned by a resilient materials sector, buoyed by a historic surge in gold prices. Spot gold hit a record $4,888 per ounce as investors fled to safe havens amid the geopolitical uncertainty. Conversely, U.S. futures pointed lower, with the Dow, S&P, and Nasdaq all posting their worst daily performances since October.

All eyes now turn to President Donald Trump's speech at the World Economic Forum in Davos. He is expected to reiterate demands for U.S. ownership of Greenland, threatening 10% tariffs on European nations and raising them to 25% in June. Market sentiment remains jittery ahead of his address and a busy week of corporate earnings.