Futures for Canada's main stock index inched up on Wednesday as crude prices rose on prospects of fresh Western sanctions on Russia, with gains capped by concerns over aggressive policy tightening by the U.S. Federal Reserve to tackle inflation.
The TSX Composite Index collapsed 154.77 points to end Tuesday’s session at 21,930.83
June futures edged up 0.1% Wednesday, as the United States and its allies were set to impose fresh sanctions on Russian banks and officials and ban new investment in Russia over civilian killings in northern Ukraine, which President Volodymyr Zelenskiy described as "war crimes."
Russia denied targeting civilians.
The Kremlin said on Wednesday peace talks with Kyiv were not progressing as rapidly or energetically as it would like.
Berenberg raised the target price on Endeavour Mining to $47.00 from $42.00
Scotiabank cut the target price Torex Gold Resources to $22.00 from $24.00
ATB Capital Markets resumed coverage on Valens Company with an outperform rating and a price target of $9.50.
Economically speaking, Western University’s IVEY School of Business puts out its Purchasing Managers Index for March at 10 a.m. EDT.
The Ford government in Ontario plans to raise the hourly minimum wage by 50 Canadian cents beginning in October, in what would be the second hike in an election year.
ON BAYSTREET
The TSX Venture Exchange tumbled 13.87 points, or 1.5%, to 891.23.
ON WALLSTREET
Stock futures dipped for a second day on Wednesday and rates soared to new heights as investors bet the Federal Reserve is about to aggressively tighten policy to fight inflation, and in turn slow the economy.
Futures for the Dow Jones Industrials withered 232 points, or 0.7%, to 34,318.
Futures for the S&P 500 fell 42.75 points, or 1%, to 4,4477.50.
Futures for the NASDAQ Composite Index plunged 227.5 points, or 1.5%, to 14,600.50.
Minutes from the Fed’s most-recent meeting are slated for release Wednesday afternoon. This was the meeting last month where the central bank raised rates and indicated six more hikes were coming this year.
Investors are bracing for new details in the minutes about the Fed’s plan to reduce its balance sheet after comments from Fed officials knocked down stocks on Tuesday.
All three major averages were headed for their second day of declines.
Tech shares led the market’s losses on Tuesday and were set to fall again on Wednesday as investors rotated out of the group as they brace for higher rates to slow the economy. Tesla and Nvidia shares were set to fall more than 2%.
Investors continued to monitor the latest developments out of Europe, as the Ukraine-Russia war continues.
The European Union and the U.S. are preparing to slap new sanctions on Russia after evidence emerged of war crimes allegedly committed by Russian forces. The new sanctions include a ban on Russian coal imports.
In Asia, the Nikkei 225 in Japan declined 1.6%, while in Hong Kong, the Hang Seng returned from a long weekend to dive 1.9%.
Oil prices surged $1.13 to $103.09 U.S. a barrel.
Gold prices dipped $3.50 to $1,924 U.S.
