Futures for Canada’s resource-heavy main stock index climbed on Wednesday as benign U.S. inflation data amplified investor hopes of interest rates having peaked, with higher metal prices also boosting sentiment.
The TSX Composite strengthened 314.58 points, or 1.6%, to conclude Tuesday at 20.023.77, a near-eight-week high.
December futures were up 0.6% early Wednesday.
The Canadian dollar was inched up 0.1 cents to 72.09 cents U.S.
Among companies, grocery giant Loblaw reported a 5% increase in third-quarter revenue, aided by a strong demand for drugs as well as discounted groceries at its stores.
The macroeconomic agencies have a full plate today, Statistics Canada reported wholesale trade, rose 0.4% to $83.1 billion in September, while and manufacturing sales increased for the third consecutive month, up 0.4% in September mainly on higher sales of petroleum and coal. Excluding this subsector, manufacturing sales declined 0.4%.
The Canadian Real Estate Association offers MLS sales for October later on this morning,
ON BAYSTREET
The TSX Venture Exchange gained 5.84 points, or 1.1%, Tuesday to 516.95.
ON WALLSTREET
U.S. stock futures ticked higher Wednesday, as traders tried to extend a strong rally from the previous session that was sparked by tame inflation data. Wall Street also had its eyes on Washington as lawmakers tried to avoid a government shutdown.
Futures for the Dow Jones Industrials soared 116 points, or 0.3%, to 35,002.
Futures for the S&P 500 captured 21 points, or 0.5%, at 4,532.
Futures for the NASDAQ leaped 116 points, or 0.7%, to 15,995.75.
The S&P 500 climbed 1.9% Tuesday, while the NASDAQ popped about 2.4% higher. It was the best day since April for both indexes. The 30-stock Dow added nearly 490 points, or 1.4%.
These gains came after October’s consumer price index, a key inflation metric, came in lower than the 0.1% increase economists surveyed by Dow Jones had expected. Instead, the CPI came in flat on a monthly basis. Investors celebrated the news, sending stocks soaring on the hopes that the Federal Reserve could finally put an end to its rate-hiking campaign.
Target shares popped 10% on better-than-expected results for the third quarter.
Late Tuesday, the House of Representatives passed a bill to avert a government shutdown. The measure will go to the Senate for a vote. If cleared by lawmakers, the legislation goes to President Joe Biden. Without a funding bill, the federal government is slated to shut down at the end of the week.
In Japan, the Nikkei 225 leaped 2.5% Wednesday, while in Hong Kong, the Hang Seng gathered 3.9%.
Oil prices docked 48 cents to $77.78 U.S. a barrel.
Gold prices gained $8.30 to $1,974.80 U.S. an ounce.
