CANADA STOCKS-TSX futures slide as China's low-cost AI model spooks tech investors

Jan 27 (Reuters) - Futures tied to Canada's main stock index fell on Monday, joining the global market rout, as investor confidence in artificial intelligence-linked stocks was shaken by the rising popularity of a Chinese discount AI model.

December futures on the S&P/TSX index SXFcv1 were down 0.8% at 6.45 a.m. ET (1145 GMT).

Wall Street futures also dropped sharply after a selloff in AI-related shares. .N

Chinese startup DeepSeek last week launched a free AI assistant that it says uses lower-cost chips and less data, challenging the belief that AI will boost demand across the supply chain, from chipmakers to data centers.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended higher for a ninth straight day on Friday, as the prospect of strong U.S. economic growth under the Trump administration outweighed expected trade tariffs.

Investors will be closely watching interest rate decisions from the Bank of Canada and the U.S. Federal Reserve on Wednesday.

The Canadian central bank has reduced rates by a cumulative 1.75 percentage points since June 2024 and is anticipated to cut rates by an additional 25 basis points.

Analysts will also watch out for the policymakers' commentary as they navigate risks of U.S. trade tariffs.

On the flipside, the Fed is expected to keep rates unchanged.

Among commodities, Gold prices XAU= dipped on Monday as the U.S. dollar strengthened. GOL/

Oil prices LCOc1, CLc1 rose slightly, with traders remaining cautious despite the U.S. retracting threats of sanctions against Colombia, easing fears of immediate supply disruptions. O/R

In corporate news, investment firm Brookfield Asset Management BAM.TO said on Monday it has closed two real-estate investments in Japan worth a combined $1.6 billion.

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