Greece was expected to weigh on stock markets for a second day Tuesday as the country’s leaders continued to attempt to reach an agreement on the terms of a second bailout in order to avoid looming bankruptcy.

The Canadian dollar moved down 0.34 of a cent to 100.11 cents US as commodity prices retreated and traders worried about Greece defaulting on its debt bought into the U.S. dollar.

U.S. futures were lower with the Dow Jones industrial futures down 22 points to 12.754, the Nasdaq futures lost 8.5 points to 2,517.25 and the S&7P 500 futures declined 4.4 points to 1,334.7.

Athens must clinch a €130 billion bailout deal from the eurozone and the International Monetary Fund and avoid a March default on its bond repayments, which would cause havoc in the financial system.

But first, Greek leaders have to agree on another series of harsh austerity measures.

Among the measures the EU and IMF are pressing Greece for is a cut in the €750 minimum wage to help boost the country’s competitiveness. This reduction would have a knock-on effect in the private sector — because private companies also base their salaries on the minimum wage — and even unemployment benefits. Unions and employers’ federations alike have deplored the measure as unfair and unnecessary.

Greek party leaders were to hold further meetings Tuesday to seek an agreement.

Those discussions were taking place amid a general strike disrupting public services and thousands of protesters taking to the streets of Athens.

Demand concerns and the higher greenback depressed commodity prices.

A stronger greenback usually helps depress oil and metal prices, which are denominated in dollars, as it makes commodities more expensive for holders of other currencies.

The March crude contract on the New York Mercantile Exchange dropped 79 cents to US$96.12 a barrel on analyst estimates that crude inventories likely rose about 2.3 million barrels last week.

The American Petroleum Institute announces its weekly supply data later Tuesday while the Energy Department’s Energy Information Administration reports its figures Wednesday.

Crude supplies in the U.S. have increased for the past three weeks at a key Cushing, Oklahoma delivery point amid a mild U.S. winter.

Copper prices also gave back gains with the March contract down six cents to US$3.81 a pound.

The April bullion contract on the Nymex declined $9.50 to US$1,715.40 an ounce.

There was major dealmaking in the resource sector.

Mining giant Xstrata PLC and commodities dealer Glencore International PLC have agreed to merge in a US$90 billion deal that would create the world’s fourth largest natural resources group.

The combined company will control a chain of businesses from mining to refining, storage and shipping of basic commodities like coal, copper and corn. Its properties would include major nickel mining and refining businesses in Canada, where Xstrata subsidiary Xstrata Nickel owns the former Falconbridge nickel company in Sudbury, Ont.

In earnings news, Canfor Pulp Products Inc. (TSX:CFX) said its net income in the fourth quarter was $5.9 million or 17 cents per share, compared to a loss of $11.3 million or 32 cents per share a year earlier.

Poor economic data from Germany also cast a shadow over markets.

Industrial production in Europe’s biggest economy fell 2.9% in December from the month before, suggesting the country’s economic slowdown could be worse than expected.

The government has cut its estimate for 2012 growth from 1.0% to 0.7% as the crisis over too much government debt in some countries weighs on Germany and its trade partners in the 17-nation eurozone.

Traders also looked to U.S. Federal Reserve chairman Ben Bernanke and his testimony later in the morning before the Senate Banking Committee.

Economists expect no shifts in the Fed’s efforts to bolster the recovery. They say Bernanke’s tone might be slightly more upbeat than when he spoke Thursday to House members in the wake of a much better than expected non-farm payrolls report for January.

Analysts expect Bernanke to hold out the possibility that the Fed might launch another round of bond purchases later this year if the economy needs more support. Such purchases are intended to further drive down long-term rates.

European markets were lower with London’s FTSE 100 index down 0.52%, Frankfurt’s DAX lost 0.94% and the Paris CAC 40 fell 0.69%.

Earlier in Asia, the mood in the markets was subdued.

In mainland China, the benchmark Shanghai Composite Index fell 1.7% while the smaller Shenzhen Composite Index lost 1.7%. Japan’s Nikkei index and Hong Kong’s index fell 0.1%.