Futures tracking Canada's blue-chip stocks rose on Thursday, in line with global markets, after the US Federal Reserve reiterated its focus on combating inflation, with rising gold prices lending further support.
The TSX dipped 90.8 points to end Wednesday at 35,491.27, its lowest level since July 31, weighed down by declines in commodity-linked stocks.
The Canadian dollar eked ahead 0.04 cents to 71.44 cents U.S.
Futures marched 0.7% Thursday morning.
Bank of Canada Governor Tiff Macklem said on Wednesday inflation is likely to remain elevated in the near term and reiterated the central bank's readiness to raise rates if price pressures persist.
Prime Minister Mark Carney is set to address the European Parliament on Thursday, amid tensions with Washington over the EU's plans to grant Canada associate member status.
On the economic lineup, Statistics Canada reported foreign investors purchased $20.6 Billion worth of Canadian securities in July, compared with the net sale of $30.6 Billion of foreign instruments by Canadians
In August, the agency’s industrial product price index gained 1.3%, and 13.5% year-over-over. Its raw materials price index tacked on 3.1%, and 13.5% year-over-year.
ON BAYSTREET
The TSX Venture Exchange skidded 4.88 points Wednesday to 896.10.
ON WALLSTREET
Stock futures climbed Thursday, with traders trying to claw back some of the losses suffered in the previous session incited by the first Federal Reserve interest rate hike in three years.
Futures for the Dow Jones Industrials ballooned 384 points, or 0.7%, to 52,299.
Futures for the S&P 500 jumped 61 points, or 0.8%, to 7,684.
Futures for the NASDAQ Composite leaped 308.75 points, or 1.1%. to 29,565.50.
The blue-chip Dow lost more than 630 points, or 1.2%, dragged down by financial services names.
The broad market S&P 500 edged lower by 0.5%, while the tech-heavy NASDAQ ended the session marginally lower.
Software giant Microsoft just boosted its total return prospects with a sweet dividend hike, according to Morgan Stanley.
On Tuesday, the company announced a quarterly dividend of 98 cents per share, reflecting an increase of 8%. The dividend is payable on Dec. 10 to shareholders of record on Nov. 19.
The Fed on Wednesday raised the overnight federal funds rate by a quarter percentage point on Wednesday afternoon, bringing the target range to 3.75%-4%.
Policymakers also signaled another hike could come this year, with Fed Chairman Kevin Warsh saying that inflation remains too high.
Investors are now turning to Thursday’s economic data for further clues on the economy’s health.
Weekly jobless claims data will be out at 8:30 a.m. ET. Traders are also monitoring August’s housing starts, which could offer a read on how elevated borrowing costs are affecting residential construction.
In Japan, the Nikkei 225 index hiked 0.3% Thursday, while in Hong Kong, the Hang Seng pointed lower 0.4%.
Oil prices gained two dollars to $100.43 U.S. a barrel.
Gold prices hung back $10.20 to $4,377.30 U.S an ounce.
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