Futures for Canada's main stock index rose on Wednesday, boosted by gains in commodity prices, with investors expecting a pause in interest rate hikes by the U.S. Federal Reserve.
The TSX was positive 69.09 points to close Tuesday at 19,990.40.
June futures on the S&P/TSX index increased 0.3% Wednesday morning.
The Canadian dollar gained 0.11 cents to 75.21 cents U.S.
A Reuters poll of economists said the Bank of Canada will raise interest rate again in July to 5.00% after a surprise 25-basis-point increase last week.
On the economic beat, new motor vehicle sales for April are due Wednesday.
ON BAYSTREET
The TSX Venture Exchange was positive 2.51 points Tuesday to 616.76.
ON WALLSTREET
S&P 500 futures traded higher Wednesday as investors looked ahead to the Federal Reserve’s policy decision and subsequent press conference slated for the afternoon.
Futures for the Dow Jones Industrials docked 77 points, or 0.2%, to 34,454.
Futures for the S&P 500 took on 5.75 points, or 0.1%, to 4,422.50.
Futures for the NASDAQ Composite sprang forward 19 points, or 0.1%, to 15,119.50.
Aside from the Fed’s policy announcement, investors are preparing for Chair Jerome Powell’s remarks to the media, where he may give insight into the state of the economy and the central bank’s path forward.
Markets see a 90% chance that the central bank will keep rates at the current target of 5% to 5.25%. This would be a reprieve from rate hikes following a streak of 10 straight increases.
May’s producer price index, an indicator of the path of inflation, is due on Wednesday morning. Economists polled by Dow Jones anticipate a decline of 0.1%. On Tuesday, May’s reading of the consumer price index, which showed the lowest annual increase in more than two years, bolstered investor hopes that the Fed will not raise interest rates.
Toyota shares hit a 16-month high Wednesday after shareholders voted to retain Akio Toyoda as its chairman in a broad endorsement of the company’s board and renewed strategy.
In Japan, the Nikkei 225 increased 1.5% Wednesday, while in Hong Kong, the Hang Seng index faded 0.6%.
Oil prices jumped 79 cents to $68.40 U.S. a barrel.
Gold prices brightened 70 cents to $1,959.30. U.S. an ounce.
