Futures Spurred by Promise of Stimulus

Banks in Spotlight

Canada's main stock index futures rose on Wednesday, after Bank of Canada Governor Stephen Poloz raised hopes of more monetary stimulus, even as the economy slowly recovers from the coronavirus crisis.

The S&P/TSX Composite Index gained 72.7 points to finish Tuesday at 15,148.12.

The Canadian dollar gained 0.2 cents early Wednesday to 72.78 cents U.S.

June futures spiked 1% Wednesday.

Bank of Montreal reported quarterly profit below analysts' estimates as it set aside more money to cover potential loan losses stemming from the coronavirus pandemic.

National Bank of Canada raised the target price on Bank of Nova Scotia to $56.00 from $53.00

TD Securities cut the target price on Dream Unlimited to $10.50 from $11.00

TD Securities raised the rating on Uranium Participation to buy from hold

National Bank of Canada raised the price target on Vermilion Energy to $8.00 from $6.00

The central bank has slashed its key interest rate three times to a record low of 0.25% since the outbreak started and launched its first ever large-scale bond buying program to alleviate stress in financial markets.

ON BAYSTREET

The TSX Venture Exchange dropped 3.41 points to close Tuesday at 538.43.

ON WALLSTREET

U.S. stock futures pointed to more gains at Wednesday’s open on optimism about the reopening of the economy. Shares of airlines and cruise lines led gains in the premarket.

Futures for Dow Jones Industrials jumped 327 points, or 1.3%, early Wednesday to 25,329.

Futures for the S&P 500 gained 30.5 points, or 1%, to 3,025.

Futures for the NASDAQ Composite hiked 38.5 points, or 0.4%, to 9,445.

A report from Bloomberg News that said the Trump administration is weighing sanctions on Chinese firms and officials over the situation in Hong Kong pushed stocks off their highs in the final hour of trading. President Donald Trump said Tuesday afternoon he would make an announcement about the administration’s response to China’s actions by the end of this week.

But futures signaled investors were ready to look past that concern and instead bet on the reopening.

Carnival Corp. shares jumped 14.9% in pre-market trading Wednesday. United Airlines added 8%.

Nine of 11 S&P 500 sectors were positive in Tuesday’s session, led by banks, which are getting a boost the economy reopening. Citigroup rose more than 9% and JPMorgan gained 7% after CEO Jamie Dimon said the bank is “very valuable” at current prices.

JPMorgan was up another 3.3% in pre-market trading Wednesday.

Overseas, in Tokyo, the Nikkei 225 gained 0.7%, Wednesday, while in Hong Kong, the Hang Sang index docked 0.4%.

Oil prices slumped 62 cents to $33.73 U.S. a barrel.

Gold prices sank $20.70 to $1,707.50.