Stock futures indicated a higher start for Canada's main stock index on Wednesday as investors awaited the outcome of the U.S. Federal Reserve's policy meeting for hints on the timing of any interest rate hikes.
The S&P/TSX composite index gained 156.38 points, or 1.1%, to finish Tuesday at 13,861.52. Wednesday morning futures inched up 0.3%.
The Canadian dollar faded 0.05 cents to 85.96 U.S. early Wednesday.
Equipment finance company Element Financial Corp, which has enjoyed a meteoric rise since going public three years ago, said on Tuesday that it expected 35% growth in new equipment loans and leases in 2015.
RBC cut the rating on Africa Oil Corp to sector perform from outperform. Canada’s biggest bank also cut the rating on Oryx Petroleum Corp. to sector perform from outperform. Brean Capital started coverage on Stantec Inc. with buy rating and a $39.00 price target
In the economic docket, Statistics Canada reported that wholesale trade edged up 0.1% in October to $54.2 billion. The agency adds gains were recorded in five of seven sub-sectors, representing 68% of wholesale sales.
ON BAYSTREET
The TSX Venture Exchange turned negative 0.94 points Tuesday to 642.35
ON WALLSTREET
Markets are watching the U.S. Federal Reserve closely Wednesday, though concerns about oil prices and Russia haven't gone away.
Ahead of the opening bell, futures for the Dow Jones Industrials regained 71 points, or 0.4%, to 17,078. Futures for the S&P 500 advanced 9.25 points, or 0.5%, to 1,974.25, and futures for the NASDAQ took on 19.25 points, or 0.5%, to 4,102.50.
FedEx and General Mills will post quarterly earnings before the opening bell. Oracle will report after the close.
Shares in American Apparel are expected to surge at the open after the company announced that it was finally replacing controversial CEO Dov Charney, six months after he was fired. The stock has fallen by more than 50% this year.
Shares of Darden Restaurants popped by about 2% in extended trading on earnings which narrowly beat expectations.
Sony shares are worth watching after a New York cinema canceled the premiere of its controversial film, "The Interview." A group that claimed it hacked Sony Pictures threatened people who go to watch the movie with a "bitter fate."
Investors will be monitoring the Federal Reserve news conference at 2 p.m. ET to gauge what Fed chair Janet Yellen is planning for monetary policy over the coming year.
The Fed previously reassured markets that any rate rise would be a "considerable time" away, but analysts say the language may be tweaked, despite the deflationary impact of plunging oil prices. The Fed has held its key short-term rate near zero since 2008.
All major European markets were declining in early trading.
The Russian ruble, which has plunged by over 50% since the start of the year, is rising by about 2% versus the U.S. dollar Wednesday.
The currency is stabilizing after enduring two consecutive days of heavy losses. Russian authorities are reportedly selling foreign exchange reserves.
Greece is voting for a new president Wednesday and Russian concerns are still top of mind, which has created a negative mood in Europe.
Asian markets closed with mixed results, as Japan gained 0.4%, while Hong Kong fell 0.4%.
Oil prices settled $1.61 to $54.32 U.S. a barrel
Gold prices picked up $3.30 to $1,197.60 U.S. an ounce.
