Futures for stocks in Canada’s largest centre gained on Wednesday as stimulus hopes rose, supported by improved U.S. retail sales that indicate a sooner-than-expected global economic recovery.
The S&P/TSX Composite Index finished Tuesday positive 156.17 points, or 1%, to 15,515.83.
The Canadian dollar eked 0.03 cents early Wednesday to 73.92 U.S.
June futures gained 0.5% Wednesday.
Bank of Canada Governor Tiff Macklem's assurance to support the nation's economic recovery using policy tools further bolstered investor sentiment.
Three employees of the former Barrick Gold unit Acacia Mining were reportedly released from jail in Tanzania on Tuesday after agreeing a plea bargain deal.
Jefferies raised the target price on Hexo Corp. to $0.75 from $0.50
Eight Capital started coverage on mCloud Technologies with buy rating and target price of $8.00
CIBC cut the target price on Transat AT to $7.00 from $18.00
On the economic beat, Statistics Canada reported the consumer price index fell 0.4% on a year-over-year basis in May, down from a 0.2% decline in April.
On a seasonally adjusted monthly basis, the agency said the CPI increased 0.1% in May, following a 0.7% decline in April.
ON BAYSTREET
The TSX Venture Exchange gained 2.64 points Tuesday to 562.46.
ON WALLSTREET
U.S. stock futures suggested the market would continue to move higher on Wednesday, following a big rally in the previous session that was fueled by a growing belief the worst may be over for the world’s largest economy.
Futures for Dow Jones Industrials progressed 153 points, or 0.6%, early Wednesday, to 26,364.
Futures for the S&P 500 acquired 18 points, or 0.6%, to 3,136.25.
Futures for the NASDAQ Composite Index added 55 points, or 0.6%, to 10,016.50. The indicated gains would lead the major averages to a four-day winning streak.
Amazon and Apple each rose 0.9% in the pre-market while Netflix climbed 0.7%. IBM and 3M were both up more than 1% and were among the best-performing Dow components in early trading.
To be sure, concerns about the coronavirus linger. Multiple reports said Beijing will shut down all schools amid a resurgence in coronavirus cases. In the U.S., more than 2.1 million cases have been confirmed.
Federal Reserve chairman Jerome Powell’s semiannual two-day testimony to the Senate banking committee started on Tuesday. The Fed’s announcement to beef up monetary stimulus with direct purchases of corporate bonds on Monday boosted sentiment.
Overseas, in Tokyo, the Nikkei 225 dipped 0.6% Wednesday, while in Hong Kong, the Hang Sang index 0.6%.
Oil prices settled 40 cents at $37.98 U.S. a barrel.
Gold prices fell $13.70 to $1,722.80.
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