TSX Set for Big Open

Cenovus, Hydro One in Spotlight

Stock futures pointed to a higher opening for Canada's main stock index on Tuesday as oil prices edged up, supported by strength in global stocks and an unplanned supply cut in Libya.

The S&P/TSX Composite Index fell 66.41 points short of breakeven to 14,728.20

The Canadian dollar inched up 0.06 at 74.69 U.S. early Tuesday

December futures rocketed 0.9% Tuesday.

On a day without macroeconomic figures, Cenovus Energy said it would reduce its capital spending for 2019 by 4% amid a broader turnaround plan following its highly criticized deal with ConocoPhillips.

Hydro One and its buyout target, Avista Corp, said they would file a petition, asking the Washington Utilities and Transportation Commission to reconsider its order rejecting their merger.

Detour Gold said on Monday it extended the voting deadline by two days after some shareholders with substantial holding voted to replace the entire board.

CIBC cut the price target on NFI Group to $50 from $61 to reflect the higher risk premium required for North American Original Equipment Maker equities, given the more uncertain macro environment.

Desjardins Group cut the price target on Royal Bank of Canada to $108 from $109 citing slowing loan growth, highly indebted consumers and recent pressure on oil prices.

ON BAYSTREET

The TSX Venture Exchange subtracted 8.3 points, or 1.5%, Tuesday to 564.08.

ON WALLSTREET

U.S. stock index futures pointed to a sharply higher open on Tuesday amid signs that U.S.-China trade relations could be improving.

Futures for the Dow Jones Industrial Average leaped 194 points, or 0.8%, to 24,684

Futures for the S&P 500 took on 20.25 points, or 0.8%, to 2,663.25,

NASDAQ futures hiked 67.75 points, or 1%, to 6,767.

Chinese Vice Premier Liu reportedly said Tuesday that he had been in discussion with U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer, with the aim of de-escalating a global trade war.

China is also reportedly moving toward cutting tariffs on cars made in the U.S. to 15% from the current 40%. The proposal has been submitted to the Chinese Cabinet and will be reviewed in the coming days, Bloomberg News reported. President Donald Trump hinted earlier this month that China agreed to lower auto tariffs. Shares of Ford Motor, General Motors and Fiat Chrysler all rose more than 2% in the pre-market.

Overseas, in Japan, the Nikkei 225 slumped 0.3% Tuesday, while in Hong Kong, the Hang Seng index eked up 0.1%

Oil prices gained 64 cents to $51.64 U.S. a barrel.

Gold prices tacked on $2.40 to $1,251.80 U.S. an ounce.