Canada's main stock index futures gained on Tuesday as oil prices rebounded on hopes of supply cuts from the Organization of the Petroleum Exporting Countries and its allies to offset any potential drop in demand due to the coronavirus outbreak.
The TSX Composite Index restocked 61.27 points to close Monday at 17,379.76
The Canadian dollar picked up 0.13 cents early Tuesday to 75.32 cents U.S.
March futures took on 0.8% early Tuesday.
Federal Court of Appeal is scheduled to rule on Tuesday whether Prime Minister Justin Trudeau's government adequately consulted indigenous people when it approved last year an expansion of the Trans Mountain oil pipeline.
Enbridge Inc's Line 3 pipeline replacement cleared important hurdles on Monday when a Minnesota regulator endorsed a revised environmental impact statement for the project.
Canaccord Genuity upped the price target on Absolute Software to $10.50 from $10.00
Altacorp Capital raised the price target on Parkland Fuel to $53.00 from $51.00
Altacorp Capital cut the price target on Superior Plus to $13.00 from $14.50
ON BAYSTREET
The TSX Venture Exchange sank 0.6 points Monday to 574.58.
ON WALLSTREET
U.S. stocks were set on Tuesday to continue the recovery rally following Friday’s steep selloff sparked by concerns over China’s fast-spreading coronavirus.
Futures for the Dow Jones Industrials roared ahead 346 points, or 1.2%, early Tuesday to 28,707.
Futures for the S&P 500 gained 40 points, or 1.2%, at 3,240.25
Futures for the NASDAQ Composite popped 136.75 points, or 1.5%, to 9,251.
Stocks that have been hit by fears of the coronavirus slowing the economy bounced in pre-market trading Tuesday. Apple jumped 1.7% and chipmakers rallied in early trading as well.
Companies directly impacted by the coronavirus, including Carnival, which confirmed on Monday that a former cruise-line passenger tested positive for the virus, rose in the pre-market. Carnival added 2%. Airlines bounced back as well.
Chubb, Disney, Ford, and Chipotle will report after trading hours on Tuesday. Disney shares were higher in pre-market trading.
Alphabet beat earnings estimates but missing on revenues, with Google’s advertising business falling short. Alphabet’s stock fell 3% in early trading.
Tesla shares were higher by 6% in the pre-market, continuing their amazing run. On Monday alone, Tesla’s stock jumped 19.9% to post its biggest single-day gain in six years after Argus Research raised its price target to $808 from $556, sparking a short squeeze in the shares.
Tesla was last at about $831 in the pre-market.
Tuesday’s continued bounce comes after a Reuters report said China’s central bank could cut its key lending rate as well as banks’ reserve requirement ratios in the coming weeks to support economic growth.
The report came a day after the People’s Bank of China unveiled liquidity injection measures to the tune of more than one trillion yuan.
Overseas, in Japan, the Nikkei 225 gained 0.5% Tuesday, while in Hong Kong, the Hang Seng picked up 1.2%
Oil prices gained 84 cents to $50.95 U.S. a barrel.
Gold prices deleted $11.20 to $1,571.20 U.S. an ounce.
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