Stock futures pointed to a higher opening for Canada's main stock index as oil prices rose for the first time in five days and as China cut interest rates for the second time in two months.
The S&P/TSX composite index dumped 420.93 points, or 3.1%, to close Monday’s trading at 13,052.74
The Canadian dollar moved higher 0.54 cents to 75.82 cents U.S. early Tuesday
Bank of Montreal, Canada's fourth-largest bank, reported a higher third-quarter profit, helped by growth in its wealth management and personal and commercial banking businesses.
Net income was $1.19 billion, or $1.80 per share, compared with $1.13 billion, or $1.67 per share, in the third quarter of 2014. On an adjusted basis, earnings were $1.86. Analysts on average had expected earnings of $1.73 a share.
Encana Corp. said it would sell its Haynesville natural gas assets in northern Louisiana for $850 million to GEP Haynesville LLC, a joint venture between GeoSouthern Haynesville and funds managed by GSO Capital Partners LP. Encana will also reduce its gathering and midstream investments by about $480 million on an undiscounted basis by 2020.
Sun Life Financial is in talks to buy New York-based insurer Assurant Inc's employee-benefits unit for about $900 million, Bloomberg reported, citing people familiar with the matter.
CIBC cut the target price on Canyon Well Services to $8.00 from $10.00, saying the second-quarter reporting season continued to be very challenging for the sector.
CIBC cut the price target on Transalta Corp to $10.00 from $11.00 on the company’s poor Q2 results due to planned and unplanned outages and weak trading results.
ON BAYSTREET
The TSX Venture Exchange plunged 18.88 points, or 3.5%, to close Monday at 518.64.
ON WALLSTREET
U.S. stock futures were up more than 3% and markets in Germany and the U.K. climbed.
Ahead of the opening bell, futures for the Dow Jones Industrials catapulted 524 points, or 3.3%, higher to 16,233, futures for the S&P gained 6.2 points, or 3.3%, to 1,933.25, and futures for the NASDAQ hiked 151.25 points, or 3.8%, to 4,154.50.
Officials in China, whose stock market woes have riled world markets, stepped up after the close of the market to cut interest rates and allow banks to lend more.
Markets in Europe and U.S. stock futures were already higher before China's move, and the stimulus added to the rebound from one of the worst trading days in years on Monday.
A handful of stocks are poised for big gains Tuesday. Netflix shares were rallying more than 8% and Apple rose 6.4%. It follows a rocky session for Apple shares with attempts from chief executive Tim Cook to soothe market jitters about the business in China.
Bank of America is another one to watch: The stock is up more than 5% pre-market.
Earnings and economics: Best Buy was due to post quarterly results before the market open.
On the economic front, the S&P Case-Shiller June home price index for the U.S.'s 20 biggest metro areas is due at 9 a.m. ET.
Homes sales for July are expected from the Federal Census Bureau at 10 a.m. ET.
Oil prices took on $1.36 to $39.60 U.S. a barrel
Gold prices slid $3.30 to $1,150.30 U.S. an ounce.
