Futures Leap with Momentum from Oil Firms

Scotiabank in Focus

Futures for Canada's main stock index climbed on Tuesday, tracking upbeat commodity prices, while Bank of Nova Scotia kicked off fourth-quarter earnings season for the country's biggest lenders after a profit in line with estimate.

The TSX Composite lost 163.28 points to end Monday at 20,220.49.

December futures on the S&P/TSX index jumped 0.5%.

The Canadian dollar ditched 0.08 cents to 74.11 cents U.S.

Suncor Energy said it would retain the Petro-Canada gas station retail business, while noting that capital expenditure for 2023 is expected to increase amid higher crude prices.

TC Energy forecast a rise in 2023 costs as the oil and gas pipeline company continues to grapple with rising labor costs and shortages related to its delayed Coastal GasLink pipeline.

British bank HSBC agreed to sell its business in Canada to Royal Bank of Canada for $10.04 billion, enabling RBC to grab further market share in its home market.

On the economic front, Statistics Canada reported real gross domestic product rose 0.7% in the third quarter, the fifth consecutive quarterly increase. The nation’s number crunchers added growth in exports, non-residential structures, and business investment in inventories were moderated by declines in housing investment and household spending.

ON BAYSTREET

The TSX Venture Exchange sank 1.13 points to close the week’s first session at 574.51

ON WALLSTREET

Futures connected to the S&P 500 rose Tuesday as investors looked to shake off Monday’s slide.

Futures for the Dow Jones Industrials sank 31 points, or 0.1%, to 33,840.

Futures for the S&P 500 nosed higher 3.75 points, or 0.1%, to 3,974.

Futures for the NASDAQ Composite hiked 29.75 points, or 0.3%, to 11,646.

Hibbett stock slid 5.7% in the pre-market after it missed top and bottom-line estimates for its latest quarter. The company said it was hit by higher expenses that cut into its profit margins, although the company did reaffirm its full-year forecast.

Silvergate Capital shares fell another 2.4% in the pre-market, extending yesterday’s 11.1% loss. Yesterday’s decline followed the bankruptcy filing by cryptocurrency lender BlockFi, and the further drop for Silvergate comes despite a statement that it has minimal exposure to BlockFi.

The move follows stocks in Hong Kong and Shanghai rallying overnight as a Chinese official told reporters that 65.8% of people “over age 80” had received booster shots. On top of that, the government reported the first decline in COVID infections within mainland China in more than a week.

On the economic front, traders will watch for the September reading of the S&P CoreLogic Case-Shiller Home Price Index that is due Tuesday before the bell. The report will give investors insight into how higher interest rates are affecting the housing market. Home prices in the prior month jumped about 13% year over year.

In Japan, the Nikkei 225 slid 0.5% Tuesday, while in Hong Kong, the Hang Seng Index triumphed 5.2%.

Oil prices recovered $1.28 to $78.52 U.S. a barrel.

Gold prices spiked $11.30 to $1,766.60 U.S. an ounce.