Futures for stocks in Canada’s largest centre rose on Tuesday, helped by gains in oil prices and hopes of a U.S. stimulus package to revive the economy.
The S&P/TSX Composite Index held onto gains of 61.02 points to close Monday at 16,605.50.
The Canadian dollar eked up 0.02 cents Tuesday to 74.72 cents U.S.
September futures gained 0.8% Tuesday.
A report in the Globe and Mail says Federal Finance Minister Bill Morneau could lose his job amid disagreements with Prime Minister Justin Trudeau over how to steer the economy through the coronavirus outbreak.
Nutrien Ltd. on Monday cut its annual adjusted profit forecast as weaker-than-normal industrial demand held back prices for ammonia and urea ammonium nitrate.
BMO raised the target price on Absolute Software to $18 from $12.50
TD Securities raised the target price on Equinox Gold to $25.00 from $21.00
RBC raised the target price on Teranga Gold to $20.00 from $13.00
Vancouver based NetCents announced a collaboration with Visa introducing the NetCents Visa credit card. The co-branded card enables crypto currency wallet holders and traders real-time seamless purchasing power using crypto currencies for in-store and online transactions with the more than 40 million merchants that accept Visa worldwide.
On the economic calendar, investors learned that the trend in housing starts was 204,376 units in July, up from 199,778 units in June according to Canada Mortgage and Housing Corporation.
The TSX Venture Exchange regained 7.68 points, or 1%, to end Monday’s session at 747.66.
Futures tied to major U.S. equity averages advanced in early morning trading Tuesday after days of gains on Wall Street pushed the S&P 500 within striking distance of a record high.
Futures for Dow Jones Industrials ballooned 309 points, or 1.1%, early Tuesday, to 27,988.
Futures for the S&P 500 added 19 points, or 0.6%, at 3,371.75.
Futures for the NASDAQ demurred 0.5 points to 11,072.50.
The move higher comes shortly after local news agencies reported Russian President Vladimir Putin claimed the country had given regulatory approval for the world’s first COVID-19 vaccine.
While there was skepticism about whether Russia had developed a safe vaccine so quickly, the news triggered optimism from investors about the race for an inoculation and perhaps that the market isn’t pricing in how quickly a valid one could be ready.
Shares of stocks that would benefit most from a vaccine jumped in pre-market trading. American Airlines gained 6%. Norwegian Cruise Lines climbed 6% as well. Casino shares rose. Mall-owner Simon Property Group was higher.
Goldman Sachs over the weekend raised its economic growth outlook, predicting at least one vaccine approved by the end of this year and widespread distribution of the drug by the second quarter of next year.
Investors still grappled with the uncertain fate of further coronavirus stimulus aimed at supporting Americans struggling during the pandemic.
Treasury Secretary Steven Mnuchin said Monday the White House is open to resuming coronavirus aid talks with Democrats and putting more relief money on the table to reach a compromise.
Senate Majority Leader Mitch McConnell said Monday in a tweet that he hoped lawmakers will be finalizing the bill this week and that he’s glad President Donald Trump “stepped in to soften the blow of their hostage tactics.”
Over the weekend, Trump signed four executive orders to extend some coronavirus aid, including unemployment benefits, a payroll tax holiday, defer student loan payments through 2020 and extend the federal protections from evictions.
Overseas, in Japan, the Nikkei 225 returned from a long weekend to gain 1.9%, while in Hong Kong, the Hang Seng index barreled 2.1%.
Oil prices gained 79 cents to $42.73 U.S. a barrel.
Gold prices slumped $51.20 to $1,988.50.