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Futures Drop on Lower Oil Prices

Baystreet.ca
Stock futures pointed to a lower opening for Canada's main stock index on Wednesday, pressured by a ...

Stock futures pointed to a lower opening for Canada's main stock index on Wednesday, pressured by a slip in oil prices after U.S. President Donald Trump threatened to levy new tariffs on China and Libya announced the reopening of key oil export terminals.

The S&P/TSX Composite Index gained 96.38 points, on top of Monday’s all-time record close, to end Tuesday’s session at 16,548.72

The Canadian dollar docked 0.02 cents at 76.08 cents U.S. early Wednesday

September futures swooned 0.7% Wednesday

Canaccord Genuity raised the target price on Canopy Growth Corp. to $34.00 from $32.00

Barclays raised the rating on Husky Energy to overweight from equal weight

Barclays raised the rating on Imperial Oil to equal weight from underweight

On the economic docket, the Bank of Canada is set to make it official this morning (around 10 a.m. ET), unleashing a quarter-point hike in its trendsetting rate, bringing said rate up to 1.5%. The overnight lending rate has been at 1.25% since last January.

ON BAYSTREET

The TSX Venture Exchange reversed 0.4 points Monday to 739.70

ON WALLSTREET

U.S. stock index futures tanked ahead of Wednesday’s open, as a trade spat between the U.S. and other major economies intensified.
Futures for the Dow Jones Industrials plummeted 194 points, or 0.8%, to 24,733

S&P 500 futures slumped 16.75 points, or 0.6%, to 2,780, while futures for the NASDAQ composite dropped 52 points, or 0.7%, to 7,294.50

Trade anxieties ramped up again after President Donald Trump and his administration published late Tuesday a list of 10% duties on $200 billion worth of Chinese goods. The tariffs won’t come into effect immediately, but rather face a review process, with hearings taking place in mid-to-late August.

The announcement came just days after both nations imposed $34 billion worth of tariffs on each other.

Trump is currently in Brussels attending a two-day NATO summit. During the first leg of his European trip, the U.S. incumbent has already made headlines by stating that "Germany is totally controlled by Russia," describing how a number of "inappropriate" oil and gas deals had given Moscow too much influence over Berlin.

Shares of Boeing and Caterpillar — two companies with high overseas revenue exposure — fell more than 1% each in the pre-market. Chipmakers also pulled back as Nvidia, Intel and Advanced Micro Devices all dropped more than 0.7%.

Shares of drug makers also fell after Pfizer said it will postpone price increases after a conversation with the president. Pfizer fell 0.4% before the bell, while Biogen dropped 1.4%. Merck also declined 1.6%.

Overseas, in Japan, the Nikkei 225 slumbered 1.2%, while in Hong Kong, the Hang Seng index fell 1.3%.

Oil prices faded 66 cents to $73.45 U.S. a barrel.

Gold prices stumbled $4.30 to $1,251.10 U.S. an ounce.