Stock futures pointed to a slightly higher opening for Canada's main stock index on Wednesday ahead of the end of the U.S. Federal Reserve's two-day policy meeting, at which the central bank is widely expected to reduce the size of its monthly bond purchase program.
The S&P/TSX composite index spiked 137.08 points, or 0.1%, to end Tuesday at 14,368.97. Meantime, June futures were up 0.09% Wednesday.
The Canadian dollar dropped 0.29 cents at 89.50 cents U.S. early Wednesday
Blackstone Group LP is working on a higher takeover bid for industrial conglomerate Gates Global Inc, owned by Onex Corp and the Canada Pension Plan Investment Board, after its previous offer of roughly $5.5 billion was turned down, according to sources.
On the economic beat, Statistics Canada reported this morning that Wholesale sales rose 0.8% to $50.0 billion in January, following a decline in December, with gains recorded in all subsectors except motor vehicle and parts.
Elsewhere, Jim Flaherty, the long-serving Conservative finance minister who helped steer the economy through the global financial crisis, resigned from the cabinet on Tuesday, leaving the country on track to balance its books by 2015. Energy Minister Joe Oliver is tagged by some sources as Flaherty’s replacement.
ON BAYSTREET
The TSX Venture Exchange gathered 4.81 points Tuesday to 1,035.97
ON WALLSTREET
Markets are refocusing their attention on the U.S. Federal Reserve after last week's geopolitical roller coaster ride.
Ahead of the opening bell, futures for the Dow Jones Industrials moved higher 15 points, or 0.1%, to 16,277. Futures for the S&P 500 took on three points, or 0.2%, to 1,866.80, and futures for the NASDAQ gained 6.75 points, or 0.2%, at 3,701.75.
In corporate news, FedEx and General Mills will report earnings before the opening bell.
Oracle shares fell in pre-market trading after reporting revenue that fell short of Wall Street expectations. Shares in Pacific Sunwear rose in pre-market trading after the firm posted a loss that was narrower than expected.
The Fed's Open Market Committee concludes its two-day policy meeting Wednesday afternoon, and investors seem happy shifting their focus from Russia's takeover of Ukraine's Crimean peninsula to the FOMC.
The Fed is widely expected to continue trimming its asset purchase program by another $10 billion, to $55 billion U.S. a month. The stimulus program was created to support the U.S. economy and has also been a key driver behind the equity bull market.
European markets were mixed in morning trading. Asian markets were muted Wednesday and ended with mixed results. The Nikkei 225 in Japan edged up by 0.4%.
Oil prices faded nine cents to $99.62 U.S. a barrel
Gold prices slid $13.10 to $1,345.90 U.S. an ounce.
