Futures linked to Canada’s main stock index rose on Monday due to a rise in crude and metal prices, while investors cheered the U.S. Federal Reserve Chair’s comments on Friday that endorsed the start of the rate-cut cycle in September.
The TSX Composite Index vaulted 248.61 points, or 1.1%, to end Friday and the week at 23,286.08, a record closing high. The index pulled ahead on the week by 231 points, or 1%.
The Canadian dollar moved up 0.03 cents to 74.05cents U.S.
September futures prospered 0.1% Monday.
The Canada Industrial Relations Board ordered an end to work stoppages at the country’s largest railways that posed a threat to Canada’s export-driven economy.
Among important earnings, major lenders like Bank of Nova Scotia, Royal Bank of Canada, and the National Bank of Canada are expected to report their quarterly results this week.
ON BAYSTREET
The TSX Venture Exchange flew 6.76 points, or 1.2%, to 578.03, putting the index up 11.6 points, or 2.05% since the Friday before.
ON WALLSTREET
Stock futures were little changed Monday as investors look to push equities back to record-high levels now that the Federal Reserve indicated that rate cuts are forthcoming.
Futures for the Dow Jones Industrials gained 51 points, or 0.1%, to 41,321.
Futures for the S&P 500 index took on 9.5 points, or 0.2%, at 5,662.
Futures for the NASDAQ moved ahead 6.25 points to 19,797.
Stocks are coming off a strong week that was highlighted by comments from Fed Chair Jerome Powell that interest rates cuts are on the horizon. Wall Street has been anxiously awaiting a rate cut, especially in light of some worrying economic data that sparked a sell-off at the beginning of August and worried investors that elevated borrowing costs could damage the U.S. economy.
On the economic front, initial jobless claims are due out on Thursday, followed by the July personal consumption expenditures reading on Friday.
In Japan, the Nikkei 225 dipped 0.7% Monday, while in Hong Kong, the Hang Seng index jumped 1.1%.
Oil prices picked up $1.96 to $76.79 U.S. a barrel.
Gold prices marched $13.40 to $2,559,70.
