Futures for Canada's main stock index fell on Thursday, following a rally in the previous session spurred by a less hawkish U.S. Federal Reserve, although rising gold and oil prices could limit losses.
The S&P/TSX Composite reversed and gained 279.67 points, or 1.3%, to close Wednesday at 21,184.95.
June futures were down 0.3% Thursday
The Canadian dollar gave back 0.19 cents to 78.32 cents U.S.
Shopify said it would buy U.S.-based logistics firm Deliverr for $2.1 billion, to help mitigate supply chain snarls. The company also reported a 22% jump in first-quarter revenue, which slightly missed estimates. Meantime, Veritas cut its rating on Shopify stock to sell.
Bombardier Inc reported a smaller quarterly adjusted loss, while Canadian Natural Resources' quarterly net profit more than doubled thanks to rising crude and gas prices.
French aerospace firm Latecoere agreed to buy Canada's Avcorp for around 41 million Canadian dollars in cash.
National Bank cut the rating on 5N Plus to sector perform from outperform
RBC raised the target price on Fortis to $65.00 from $60.00
ON BAYSTREET
The TSX Venture Exchange re-strengthened 12.73 points, or 1.6%, Wednesday to 807.38.
ON WALLSTREET
Stock futures fell in early morning trade Thursday, putting Wall Street on track to give back some of sharp gains seen in the previous session after the Federal Reserve raised rates by half a point.
Futures for the Dow Jones Industrials staggered 129 points, or 0.4%, to 33,840.
Futures for the S&P 500 fell 23.75 points, or 0.6%, to 4,271.50.
Futures for the NASDAQ Composite Index slumped 96 points, or 0.7%, to 13,434.
On Thursday morning, e-commerce company Shopify reported disappointing results on the top and bottom lines, sending the stock down 14%. Papa John’s, however, gained 3% after reporting a stronger-than-expected first quarter.
In economic data, investors will be eyeing jobless claims data, which is due out at 8:30 a.m.
Stocks rose for a third straight day to start the month Wednesday, after the Fed increased its benchmark interest rate by 50 basis points, as expected, and said it would begin reducing its balance sheet in June.
However, Fed Chair Jerome Powell said during his news conference that the Fed is “not actively considering” a larger 75-basis-point rate hike, which appeared to spark a rally.
Some Wall Street strategists had suggested markets could see a relief rally after the rate increase. After Powell’s comments, investors seemed at ease about the central bank’s ability to slow inflation without triggering a recession.
Markets in Japan remained closed for holiday, while in Hong Kong, the Hang Seng index fell 0.4%.
Oil prices grabbed $1.10 to $108.91 U.S. a barrel.
Gold prices picked up $29.40 to $1,898.20 U.S.
