Futures for Canada's main stock index rose on Wednesday, buoyed by rising prices of most metals as Treasury yields slipped, while investors awaited minutes from the Federal Reserve's September policy meeting and later in the week U.S. inflation data.
The TSX Composite surged 255.13 points, or 1.3%, to close the week’s first session at 19,501.20, its biggest percentage gain in nearly a month.
December futures were up 0.5% early Wednesday.
The Canadian dollar doffed 0.12 cents to 73.49 cents U.S.
On the economic slate, Statistics Canada informs us that building permits jumped 3.4% in August to $11.9 billion.
ON BAYSTREET
The TSX Venture Exchange edged higher 0.55 points to wind up Tuesday at 534.09.
ON WALLSTREET
Stock futures rose on Wednesday as Treasury yields continued to retreat from the 16-year highs reached last week. Investors also cheered a large merger in the energy space.
Futures for the Dow Jones Industrials pumped 88 points, or 0.3%, higher to 34,023.
Futures for the S&P 500 took on 12 points, or 0.3%, at 4,403.50.
Futures for the NASDAQ added 56 points, or 0.4%, to 15,326.75.
Exxon Mobil agreed to buy shale driller Pioneer Natural Resources in an all-stock transaction worth $59.5 billion, the largest merger announced on Wall Street this year. Pioneer shares were up 2% in early trading. Exxon was down by about 1%.
The 10-year Treasury yield was down more than nine basis points to 4.56%. A day earlier, the benchmark U.S. yield fell, giving stocks a boost. The 30-stock Dow added 0.4% on Tuesday, while the S&P 500 gained 0.52% and the tech-heavy NASDAQ Composite jumped 0.6%.
Wall Street will get another clue into the state of inflation Wednesday with September’s producer price index report. Economists expect that the PPI gained 0.3% last month, according to Dow Jones.
In addition, minutes from the Federal Reserve’s latest meeting due in the afternoon will offer further insight into the central bank’s hiking cycle after it chose to skip an interest rate increase last month.
Traders are also looking ahead to Thursday’s consumer price index report for September.
Investors continue to assess the ongoing war unfolding between Israel and Hamas after the militant group launched an attack on Israeli civilians in what marked the deadliest offensive the country’s experienced in 50 years. President Joe Biden condemned the Hamas attacks as terrorism in remarks Tuesday and said that the United States stands with Israel.
In Japan, the Nikkei 225 acquired 0.6% Wednesday, while in Hong Kong, the Hang Seng hiked 1.3%.
Oil prices subsided 78 cents to $85.19 U.S. a barrel.
Gold prices hiked $9.90 to $1,885.20 U.S. an ounce.
