Futures Get Boost from Higher Oil Prices

Futures in Canada's equity markets rose on Wednesday, as oil prices advanced on talks that the Organization of the Petroleum Exporting Countries could extend output curbs to counter a potential drop in demand due to China's coronavirus outbreak.

The TSX Composite Index gained 58.36 points to close Tuesday at 17,500.88

The Canadian dollar sank 0.09 cents early Wednesday to 75.87 cents U.S.

March futures rose 0.2% early Wednesday.

Canadian National Railway said on Tuesday it sees crude shipments as a growth driver in the year for the country's largest railway operator, which reported a better-than-expected fourth-quarter profit.

Restaurant Brands International Inc's Tim Hortons said on Tuesday it has removed Beyond Meat's products from its coffee and donut shops in the Canadian provinces of Ontario and British Columbia.

Air Canada said on Tuesday it was cancelling select flights to China to better match capacity with expected demand as the spread of the new coronavirus rattles travellers.

Plant-based proteins maker Burcon NutraScience said on Tuesday it had secured $10 million through a bought deal, just days after food giant Nestle SA teamed up with the Canadian company.

National Bank of Canada raised the rating on Altagas to outperform from sector perform

National Bank of Canada cut the rating on Gibson Energy to sector perform from outperform

National Bank of Canada cut the rating on Superior Plus to sector perform from outperform

ON BAYSTREET

The TSX Venture Exchange recovered 1.87 points Tuesday to 575.63.

ON WALLSTREET

U.S. stock index futures rose on Wednesday morning as markets continue to rebound from Monday’s heavy selloff, led by solid gains from Apple after the tech giant reported better-than-expected earnings.

Futures for the Dow Jones Industrials sprang up 107 points, or 0.4%, early Wednesday to 28,817.

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Futures for the S&P 500 gained 10.5 points, or 0.3%, at 3,288.50.

Futures for the NASDAQ Composite climbed 39.25 points, or 0.4%, to 9,144.50.

Apple shares gained more than 1% in the pre-market after its quarterly results easily beat analyst expectations. The company’s results were driven in part because of an 8% uptick in iPhone sales, which totaled $55.96 billion.

McDonald’s, another Dow component, also posted better-than-expected quarterly results but the stock dropped 0.4%. Dow and ADP also reported profits that beat analyst estimates.

Wednesday’s gains were capped, however, by a 2.4% loss in Boeing shares. The aerospace giant’s stock declined after Boeing said it expects 737 Max costs to roughly double what the company expected.

So far, nearly 25% of S&P 500 companies have reported results for the previous quarter. Of those companies, nearly 72% have beaten analyst expectations.

Investors will be closely watching the U.S. Federal Reserve on Wednesday afternoon, as the central bank convenes for its first monetary policy meeting of the decade.

The main interest rate is widely expected to hold steady in the 1.50%-to-1.75% range.

Chinese officials said late Tuesday that the death toll from the coronavirus has risen to 132 with total cases in China nearing 6,000. The White House told U.S. airlines on Tuesday that the administration is considering a suspension of flights from China to the U.S.

Overseas, in Japan, the Nikkei 225 regained 0.7% Wednesday, while in Hong Kong, markets returned from the Chinese New Year with a loss of 2.8%

Oil prices gained 29 cents to $53.37 U.S. a barrel.

Gold prices added $1.30 to $1,571.10 U.S. an ounce.