Futures Grow on Upward Oil Prices

Thomson, Gibson in Focus

Canada's main stock index was set to open higher on Wednesday, a day after posting its worst performance in over two months, as the bourse tracked an uptick in crude oil prices.

The TSX was pummeled 237.2 points, or 1.5%, to conclude trading Tuesday at 20,242.07.

June futures on the S&P/TSX index eked up 0.2% Wednesday morning.

The Canadian dollar was unchanged at 74.19 cents U.S.

Among company news, an investor consortium including Reuters News parent Thomson Reuters and U.S. buyout firm Blackstone sold shares worth about $3.41 billion in market operator London Stock Exchange Group.

Credit Suisse and Stifel FirstEnergy turned bullish on oil refining firm Gibson Energy.

In the economic docket, Statistics Canada said foreign investors reduced their exposure to Canadian securities by $19.1 billion in March, the largest divestment since September 2022. Meanwhile, Canadian investors reduced their holdings of foreign securities by $5.6 billion in March, a fourth consecutive monthly divestment.

Meanwhile, the Canadian Real Estate Association said MLS listings show national home sales jumped by double digits on a month-over-month basis. National home sales surged 11.3% month-over-month in April. Actual (not seasonally adjusted) monthly activity came in 19.5% below April 2022.


The TSX Venture Exchange shrank 8.79 points, or 1.4%, to 607.02.


Stock futures rose Wednesday as investors awaited news of developments in the negotiations between congressional leaders and President Joe Biden on the U.S. debt ceiling.

Futures for the Dow Jones Industrials jumped 123 points, or 0.4%, at 33,184.

Futures for the S&P 500 tacked on 14 points, or 0.3% to 4,137.

Futures for the NASDAQ Composite added 28.75 points, or 0.2%, to 13,512.

The White House said Tuesday that Biden has directed staff to meet daily on outstanding issues. The president also canceled the second leg of an upcoming international trip given the negotiations, the White House said. House Speaker Kevin McCarthy said that a “better process” is now in place for further talks. He also said that it’s “possible to get a deal by the end of the week.”

Tuesday’s “meeting between President Biden and House Speaker McCarthy went as well as could have reasonably been hoped for,” wrote Citi chief U.S. economist Andrew Hollenhorst, in a note. “We continue to expect a long-term debt ceiling deal.”

Disappointing quarterly revenue and a lower forecast for full-year performance from Dow member Home Depot also soured investor sentiment in Tuesday’s session. On the economic front, April retail sales were weaker than anticipated by economists polled by Dow Jones.

In addition to tracking any updates on debt ceiling negotiations, investors will watch for data on housing starts and building permits on Wednesday.

In Japan, the Nikkei 225 gained 0.8%, while in Hong Kong, the Hang Seng dumped 2.1%.

Oil prices acquired 18 cents to $71.04 U.S. a barrel.

Gold prices deducted $1.40 to $1,991.60 U.S. an ounce.