Futures for Canada's main stock index edged higher on Monday, bolstered by a rise in oil prices, as the United States and China sought to ease trade war tensions.
The S&P/TSX Composite stumbled 215.88 points, or 1.3%, to close Friday and the week at 16,037.58, a dip of 0.7% over the last five sessions.
The Canadian dollar inched up 0.10 cents to 75.19 cents U.S. early Monday
September futures shot up 0.9% Monday.
On a day with no macroeconomic reports to peruse, Desjardins cut the rating on Golden Star Resources to hold from buy
Raymond James initiated coverage on Profound Medical Corp. with an outperform rating and $4.00 target price
ON BAYSTREET
The TSX Venture Exchange gained 3.85 points Friday, to 581.95, picking up 2.2%, on the week.
ON WALLSTREET
U.S. stock futures surged Monday after President Donald Trump said China is ready to come back to the negotiating table following a phone call Sunday and the two countries will start talking very seriously.
Futures for the Dow Jones Industrials vaulted 170 points, or 0.7%, to 25,840.
Futures for the S&P 500 jumped 13.75 points, or 0.5%, at 2,869.25
NASDAQ futures rocketed 47.75 points, or 0.6%, to 7,552.25
The major indexes all fell more than 2% on Friday, with the Dow Jones Industrial Average losing more than 620 points. Those declines wiped out the weekly gains the averages had built through Thursday’s close.
Speaking to reporters at the Group of Seven (G-7) meeting in Biarritz in France Monday, Trump said the two countries would start talking very seriously.
Semiconductor stocks such as Micron advanced 1.4%, while Advanced Micro Devices gained 2.7% in the pre-market.
Futures had indicated declines after the weekend saw an escalation of the trade war. Trump tweeted Friday after the market close that the U.S. will raise tariffs on $250 billion worth of Chinese goods to 30% from 25%.
Tariffs on another $300 billion in Chinese products will also go up to 15% from 10%, he said. The levies on the $250 billion worth of goods are scheduled to kick in Oct. 1, while the duties on the $300 billion are set to go into effect in two stages on Sept. 1 and Dec. 15.
Trump later said at the G-7 summit he regrets not raising tariffs on China even more, noting he has "second thoughts about everything." The president added he could declare the trade war a national emergency.
This economic soft patch has led central banks to ease monetary conditions, including the Federal Reserve.
Last month, the Fed cut rates by 25 basis points. Market expectations for a September rate cut are also at 100%,
Overseas, in Japan, the Nikkei 225 lost 2.2% Monday, while in the Hong Kong, the Hang Seng index dropped 1.9%
Oil prices acquired 53 cents to $54.70 U.S. a barrel.
Gold prices tallied $3.50 to $1,541.10 U.S. an ounce.
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