March futures on the S&P/TSX index were down 0.8% at 6:58 a.m. ET (11:58 GMT), in line with their U.S. peers. [.N]

Oil prices fell over $1, and copper prices hit their lowest in over a month on demand concerns as economic growth in China fell slightly short of expectations, while gold prices declined to near a week-low on a strengthening dollar. [O/R] [GOL/] [MET/L]

The December reading of Canadian producer prices data is due at 8:30 a.m. ET, and could provide more clues on the Bank of Canada's interest rate trajectory.

Hopes of early rate cuts were further quashed after U.S. Fed Board Governor Christopher Waller said on Tuesday that the central bank should not rush to cut rates despite being closer to its 2% inflation goal.

Money market participants also reduced their bets on an interest rate cut by the Canadian central bank in March to just below a 30% chance after disappointing domestic consumer price index data and hawkish comments from the Fed." [O#BOCWATCH]

Analysts said the BoC might consider interest rate cuts after the U.S. Federal Reserve, as inflation in Canada is likely to remain a bigger threat than in the United States due to high growth in Canadian wages and shelter costs.

The Toronto Stock Exchange's S&P/TSX composite index ended lower at 20,948.09 on Tuesday. [.TO]

On the companies front, apparel maker Gildan Activewear alleged undisclosed investments from its former chief Glenn Chamandy, a day after new CEO Vince Tyra assumed his post.

COMMODITIES AT 6:58 a.m. ET

Gold futures: $2,028.1; -0.1% [GOL/]

US crude: $71.01; -1.9% [O/R]

Brent crude: $76.97; -1.7% [O/R]

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