Futures for stocks on Canada’s main stock index rose on Thursday, supported by fresh monetary stimulus from Beijing and rising Sino-U.S. trade optimism.
The TSX Composite Index lost 35.13 points to close New Year’s Eve at 17,063.43. Even so, the index sprang to life in 2019, gaining 2,740.57 points, or 19.1%.
The Canadian dollar subsided 0.1 cents U.S. to 76.94 cents early Thursday
March futures advanced 0.4% Thursday.
Markets were closed on Wednesday for New Year’s Day
Jefferies cut the price target on Canopy Growth to $21.00 from $25.00
Jefferies cut the price target on Hexo Corp to $1.90 from $3.80
Scotiabank raised the target price on TC Energy to $73.00 from $72.00
Manufacturing Purchasing Managers’ Index data for December is due at 9:30 a.m.
ON BAYSTREET
The TSX Venture Exchange added 8.61 points Tuesday to finish 2019 at 577.54, a jump of 20.34 points, or 3.65%, on the year.
ON WALLSTREET
U.S. stock index futures rose on Thursday as the strong rally in 2019 was set to continue in the first trading day of the New Year.
Futures for the Dow Jones Industrials soared 168 points, or 0.6%, Thursday to 28,676.
Futures for the S&P 500 climbed 18.75 points, or 0.6%, at 3,249.75.
Futures for the NASDAQ Composite hiked 69 points, or 0.8%, to 8,821.25.
Thursday’s gains come after Wall Street booked a strong 2019 performance on Tuesday, with the S&P 500 rising 28.9% in the year. That was the broad index’s biggest annual gain since 2013, when it surged 29.6%. The Dow, meanwhile, climbed 22.3% while the NASDAQ Composite skyrocketed more than 35%.
On the data front, jobless claims numbers are due at 8:30 a.m. ET and manufacturing Purchasing Managers Index figures at 9:45 a.m. ET.
Sentiment was lifted Thursday after the People’s Bank of China lowered the amount of reserve cash the country’s banks need to support the economy. This move will inject about 800 billion yuan in liquidity to the Chinese economy.
President Donald Trump said Tuesday that he will be signing a first phase trade deal with China on Jan. 15 at the White House. The president also announced that he will be going to Beijing at a later date when phase two talks begin.
Overseas, in Hong Kong, the Hang Seng Index began 2020 with a gain of 1.3%, Thursday, while Japanese markets remained shuttered for holiday.
Oil prices gave up 12 cents to $60.94 U.S. a barrel.
Gold prices added $3.40 to $1,526.50 U.S. an ounce.
