Futures Climb on Dovish Fed Remarks

Futures for Canada's main stock index jumped about 1% on Tuesday as Treasury yields retreated after dovish comments from Federal Reserve officials though concerns about the conflict between Israel and the Palestinian Islamist group Hamas lingered.

The TSX Composite advanced 108.26 points to close Friday at 19,246.07. The index was in the red for the week, however, 295 points, or 1.5%.

December futures were up nearly 1% early Tuesday.

The Canadian dollar was flat at 73.53 cents U.S.

Markets in Canada were closed Monday for Thanksgiving Day.

Investors got some respite after top ranking Fed officials indicated that rising yields on long-term U.S. Treasury bonds could steer the central bank from further increases in its short-term policy rate.

In corporate news, Brookfield received authorization from Australia's competition regulator for its $15.35-billion acquisition of power producer Origin Energy.

ON BAYSTREET

The TSX Venture Exchange picked up 5.64 points, or 1.1%, Friday to 533.54, for a loss on the week of 25.3 points, or 4.5%.

ON WALLSTREET

U.S. stock futures were slightly higher Tuesday, boosted by a drop in Treasury yields, as Wall Street assessed the impact and risks of a protracted conflict from the Israel-Hamas war.

Futures for the Dow Jones Industrials gathered 26 points, or 0.1%, to 33,827.

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Futures for the S&P 500 doffed 0.5 points at 4,368.25.

Futures for the NASDAQ gained 0.75 points to 15,187.75.

PepsiCo shares rose about 1.5% in the pre-market after the beverage and snack maker reported better-than-expected third-quarter results. The company also raised its earnings outlook.

Hamas’ attack against Israel marks the deadliest offensive in 50 years. At least 900 people in Israel have been killed thus far in what Hamas is calling Operation Al Aqsa Flood, with more than 687 people in Gaza and the West Bank dead in retaliatory Israeli strikes across the Gaza Strip, according to the latest figures.

The benchmark 10-year Treasury yield was down about eight basis points at 4.703%, as investors turned to the traditional safe haven amid the conflict. The decline in yields gave stock futures a lift, as Wall Street had been concerned over the recent quick rise in interest rates.

During Monday’s trading session, the 30-stock Dow added 197 points, or 0.6%, while the NASDAQ Composite gained 0.4%. The S&P 500 added 0.6%.

In Japan, the Nikkei 225 hiked 2.4% Tuesday, while in Hong Kong, the Hang Seng collected 0.8%.

Oil prices lost 41 cents to $85.97 U.S. a barrel.

Gold prices shot higher $5.70 to $1,870 U.S. an ounce.