Stocks to Rise Ahead of BoC Decision
Futures on Canada's resource-heavy main stock index tracked gains in gold and copper prices on Tuesday as investors await the Bank of Canada's policy meeting on Wednesday to gauge the path of interest rate hikes.
The TSX gained 128.13 points to conclude Friday at 19,270.85. On the week, however, the index took a header of 602 points, or 3.03%.
Futures improved 0.5% Tuesday.
Expectations of a 75-basis-point hike at the BoC's September meeting have jumped since the U.S. Federal Reserve chief Jerome Powell warned of aggressively rising interest rates at the cost of slowing economic growth a week ago. Traders see a 94% chance of such a hike on Wednesday.
Markets were closed Monday for Labour Day.
ON BAYSTREET
The TSX Venture Exchange improved 4.88 points Friday to 632.02. On the week, though, the index stepped back nearly 14 points, or 2.2%.
ON WALLSTREET
Stock futures rose Tuesday as traders aimed to start the holiday-shortened week on a strong note.
Futures for the Dow Jones Industrials skyrocketed 239 points, or 0.8%, early Tuesday to 31,551.
Futures for the S&P 500 added 30.5 points, or 0.8% to 3,955
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Futures for the NASDAQ Composite grabbed 89 points, or 0.7%, to 12,193.25.
CVS Health said Monday it’s buying Signify Health for roughly $8 billion, while Volkswagen shared its plan to float Porsche for an initial public offering.
On Friday, the major averages closed out their third negative week in a row. The NASDAQ posted its first six-day losing streak since 2019, ending the session 1.3% lower, while the Dow erased a 370-point gain on Friday to close about 1.1% lower. The S&P shed 1.1% to its lowest close since July.
In the holiday-shortened week, investors are looking ahead to speeches from Federal Reserve presidents and a fresh rate hike decision from the European Central bank due out later this week. August PMI services and ISM services data are slated for Tuesday.
In Japan, the Nikkei 225 index collected 6.9 points Tuesday, while in Hong Kong, the Hang Seng lost 22.97 points, or 0.1%.
Oil prices improved 29 cents to $87.16 U.S. a barrel.
Gold prices jumped $1.80 to $1,724.36 U.S. an ounce.