Canada's main stock index futures rose on Wednesday as fears of escalation in Middle East conflict after Iran’s attack on U.S. forces in Iraq ebbed, and as oil prices rose.
The TSX Composite Index gained 62.59 points to end Tuesday at 17,167.08
The Canadian dollar erased 0.08 cents to 76.83 U.S. early Wednesday
Canada issued a travel warning asking its citizens to avoid "non-essential" travel to Iran, hours after Iran launched missile attacks on U.S.-led forces in Iraq.
McDonald's said it was expanding its pilot of plant-based meat burgers using Beyond Meat patty in 52 restaurants across Kitchener-Waterloo, Guelph and nearby areas in Canada.
Caltex Australia confirmed it has been approached by U.K.-based EG Group and others to acquire some or all of its assets, setting up a potential A$9-billion bidding war against Alimentation Couche-Tard .
CIBC raised the price target on Hudson's Bay Co. to $11 from $10.25
Scotiabank raised the price target on Alaris Royalty to $21.00 from $20.00
Scotiabank raised the price target on Automotive Properties REIT to $13.00 from $12.50.
ON BAYSTREET
The TSX Venture Exchange recovered 3.72 points Tuesday to 585.47
ON WALLSTREET
S&P 500 futures turned positive and indicated a higher U.S. stock open early Wednesday morning, making back a steep overnight decline after Iran fired rockets at an Iraqi airbase that hosts American troops.
Futures for the Dow Jones Industrials were unchanged Wednesday to 28,526.
Futures for the S&P 500 gained 6.75 points, or 0.2%, at 3,242. At their worst levels of overnight trading, S&P futures were down more than 1.6%.
Futures for the NASDAQ Composite added on 22.25 points, or 0.3%, to 8,875.25
Boeing shares were down 2% in pre-market trading. A Ukraine International Airlines Boeing 737 airliner burst into flames shortly after take-off from Tehran on Wednesday, killing all 176 people aboard in a crash that an initial report blamed on engine failure. Ukrainian officials later said, however, that the cause of the crash was yet to be determined.
Investors were initially rattled late Tuesday after U.S. military officials told the media the Al Asad airbase, which is located in western Iraq, had come under attack, with multiple projectiles hitting it. Investors around the globe have been bracing themselves for a bigger conflict between Iran and the U.S. after last week’s assassination of Gen. Qasem Soleimani, a top-ranking Iranian military official.
But so far there were no reports of casualties. The attacks did not target oil infrastructure, also boosting investor sentiment.
Overseas, in Japan, the Nikkei 225 docked 1.6% Wednesday, while in Hong Kong, the Hang Seng Index lost 0.8%.
Oil prices turned negative 81 cents to $61.89 U.S. a barrel.
Gold prices added $3.70 to $1,578.00 U.S. an ounce.
