Futures pointed to a higher opening for indices in Canada on Thursday after the U.S. Federal Reserve signaled caution in raising interest rates.
The S&P/TSX Composite Index fell behind Tuesday’s close by 57.45 points, to finish Wednesday’s session at 15,419.49. June futures moved ahead 0.2% early Thursday.
The Canadian dollar eased back 0.16 cents to 74.41 cents U.S. early Thursday.
Royal Bank of Canada reported an 11% increase in second-quarter earnings, beating market forecasts, helped by a strong performance in its capital markets and wealth management businesses.
Toronto-Dominion Bank reported second-quarter results which were ahead of market expectations, helped by a strong performance at its retail and investment banking businesses.
Canadian Imperial Bank of Commerce reported a better-than-expected second-quarter profit, helped by growth across its businesses.
RBC raised the target price on Dollarama to $138.00 from $133.00
CIBC cut the target price on Bank of Montreal to $105.00 from $109.00
RBC raised the target price on Prairiesky Royalty to $38.00 from $34.00
On the economic calendar, Statistics Canada reported that average weekly earnings were positioned at $966.00 during March, not much different from February, and up 0.9% from March 2016.
ON BAYSTREET
The TSX Venture Exchange dropped 1.28 points Wednesday to 802.39
ON WALLSTREET
A higher open was in the cards for traders south of the border on Thursday as oil-producing nations agree to extend production cuts for nine months.
Ahead of the opening bell, futures for the Dow Jones Industrials hiked 58 points, or 0.3%, to 21,043. Futures for the S&P 500 gained 4.75 points, or 0.2%, to 2,406.75. NASDAQ futures gained 17.25 points, or 0.3%, to 5,748.50.
The proposed cuts are expected to be shared again by producers outside the Organization of the Petroleum Exporting Countries later on Thursday. Led by Russia, non-OPEC producers had initially curbed output in conjunction with OPEC in a landmark deal for the first half of the year from January.
The U.S. central bank released minutes from its May meeting Wednesday, which showed that Fed officials seemed to be in sync with how they hope to reduce their $4.5-trillion balance sheet.
Fed watchers have showed concern that if the process of unwinding the balance sheet isn't done correctly, this could not only be disruptive but also drive rates up unexpectedly. Analysts are currently pricing in the next rate hike to take place at the Fed's next meeting in June.
Among firms reporting earnings Thursday: Abercrombie & Fitch, Costco Wholesale, and Medtronic plc.
Economically speaking, jobless claims and advance economic indicators are set to come out Thursday morning, with the Kansas City Fed Manufacturing Survey is also due out a bit closer to noon ET.
Overseas, markets in Europe were trading slightly lower, while in Japan, the Nikkei 225 traveled 0.4% higher, while the CSI 300 in Shanghai triumphed 1.8%.
Oil prices dipped 75 cents to $50.61 U.S. per barrel.
Gold prices added five dollars to $1,258.10 U.S. an ounce.
