Stock futures pointed to a lower opening for equities in Canada’s largest market on Tuesday, as an ongoing diplomatic rift between Qatar and several Arab states sparked concerns that it would weigh on the decision by the Organization of the Petroleum Exporting Countries to curb oil production.
The S&P/TSX Composite Index remained negative 32.97 points to close Monday at 15,409.78. June futures crumbled 0.2% early Tuesday.
The Canadian dollar climbed 0.05 cents to 74.25 cents U.S. early Tuesday.
While some analysts believe that Qatar being cut off will have minimal impact on the OPEC accord in the long run, rising U.S. production is also putting pressure on oil prices, nullifying any OPEC agreement.
Fortis Inc.’s CEO said the company could beat its annual 5% growth target with new LNG and power transmission projects in the United States and Canada.
Japan's Sumitomo Metal Mining Co said it had agreed to take a 27.75-percent interest in a Canadian gold mining project from Toronto-based IAMGOLD for $195 million.
BlackBerry has downplayed news that Toyota Motor Corp would adopt rival software for its future vehicle consoles, saying it was more focused on the faster-growing market for autonomous driving technology.
CIBC cut the price target on Asanko Gold to $2.85 from $3.85
CIBC raised the rating on Norbord to outperform from neutral
CIBC raised the rating on Western Forest Products to outperform from neutral
On the economic front, Western University’s IVEY School of Business is out this morning (10 a.m.) with its Purchasing Managers Index for May.
Any reading over 50 denotes expansion among purchasing managers’ expenditures; anything below 50 indicates contraction.
ON BAYSTREET
The TSX Venture Exchange moved lower 3.77 points Monday to 797.21
ON WALLSTREET
U.S. stock index futures pointed to a lower open on Tuesday as traders reacted to escalating tensions in the Middle East and awaited the testimony of former FBI Director James Comey.
Ahead of the opening bell, futures for the Dow Jones Industrials backed off 48 points, or 0.2%, to 21,128. Futures for the S&P 500 skidded six points, or 0.3%, to 2,428.50. NASDAQ futures moved lower 11.75 points, or 0.2%, to 5,869
Among companies reporting earnings, HD Supply Holdings and Michaels Cos are both scheduled to report before the bell. Ambarella, Dave & Buster's and Duluth are all due to report after the market close.
Tuesday will see Job Openings and Labour Turnover Survey (JOLTS) data for April released later this morning. The U.S. quarterly financial report for the first three months of the year is also due at around the same time.
European markets plunged by noon on the continent, while, in Asia, the Nikkei 225 in Japan subsided 1%, while Shanghai’s CSI 300 gained 0.7%
Oil prices lost 16 cents to $47.24 U.S. per barrel.
Gold prices added $11.10 to $1,293.80 U.S. an ounce.
