Stocks in Canada’s biggest market looked set to open higher on Wednesday as investors prepared for the first U.S. interest rate increase since 2006.
The S&P/TSX composite index rocketed 224.12 points, or 1.8%, to close Tuesday at 12,919.61. March futures bolted 0.6% higher Wednesday.
The Canadian dollar sagged 0.12 cents to 72.69 cents U.S. early Wednesday
Valeant Pharmaceuticals International cut its revenue and profit forecasts for 2015, but said it still expected double-digit percentage sales growth through higher volumes in 2016.
The Public Sector Pension Investment Board’s CEO said one of Canada's 10 largest pension fund managers is considering entering the oil and gas sector as weak crude prices create opportunities for long-term investors
Raymond James cut the rating on Enerflex Ltd. to market perform from outperform its target price to $15.50 from $15.00
The U.S. Federal Reserve is expected to announce a token hike of 25 basis points, from near zero, at 2 p.m. ET
On the economic front, Statistics Canada reported that foreigners invested $22.1 billion in Canadian instruments in October, while Canadian investors added $3.2 billion of foreign securities to their holdings, mostly non-U.S. foreign bonds.
ON BAYSTREET
The TSX Venture Exchange inched back 0.43 points Tuesday to 495.75.
ON WALLSTREET
U.S. stock futures are moving up ahead of the open and European markets are also rising, in the lead-up to a widely anticipated rate hike by the U.S. Federal Reserve.
Ahead of the opening bell, futures for the Dow Jones picked up 99 points, or 0.6%, to 17,569, futures for the S&P 500 gained 10.25 points, or 0.5%, to 2,047.25. NASDAQ futures took on 24.25, or 0.5%, to 4,625.25
Oracle will post quarterly results after the market closes Wednesday, along with FedEx and Pier 1 Imports.
The Fed is due to announce its interest rate decision at 2 p.m. ET. Fed Chair Janet Yellen will host a news conference at 2:30 p.m. ET to explain the thinking behind the central bank's decision. Investors will be monitoring her remarks closely for hints about plans for any further rate rises.
Interest rates are currently near 0%, and they've been at this level since December 2008.
A rate increase would signal that policymakers believe the economy is on solid enough footing to handle higher borrowing costs.
Asian markets ended with broad gains. The Nikkei 225 index in Japan led the way with a 2.6% jump.
Oil prices weakened 44 cents to $36.91 U.S. a barrel
Gold prices added $9.85 to $1,071.07 U.S. an ounce.
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