Futures tied to Canada's main stock index nudged higher on Wednesday ahead of the Bank of Canada's policy decision, while investors awaited trade updates as the August 1 tariff deadline drew closer.
The TSX Composite Index jumped 135.32 points to conclude Tuesday at 27,540.74, yet another all-time record.
Futures were up 0.2% Wednesday.
The Canadian dollar shed 0.08 cents to 72.52 cents U.S.
The BoC is expected to hold the rates at 2.75% for a third time, reflecting a softer-than-expected impact on the Canadian economy from the trade war with the U.S., economists predict.
ON BAYSTREET
The TSX Composite Index jumped 135.32 points to conclude Tuesday at 27,540.74.
ON WALLSTREET
Stock futures were inched higher Wednesday as investors analyzed earnings reports and awaited the Federal Reserve’s interest rate decision.
Futures for the Dow Jones Industrials nosed up 14 points, or 0.03%, to 44,830.
Futures for the much broader climbed 8.25 points to 6,414.25.
Futures for the NASDAQ jumped 55.25 points, or 0.2%, to 23,507.25.
Starbucks shares climbed 4% after the coffee chain posted stronger-than-expected revenue for the third fiscal quarter. On the other hand, Visa slipped 2% despite quarterly results coming in better than what Wall Street expected.
Shares of Meta Platforms and Microsoft were marginally higher in the premarket ahead of quarterly results due out after the closing bell.
Wednesday’s action follows a losing day on the Street, marking the first session of the last seven in which the S&P 500 did not close at an all-time high. The S&P 500 slid 0.3% on Tuesday, while the Dow and NASDAQ Composite lost about 0.5% and 0.4%, respectively.
The major averages were weighed down as the progress of U.S. trade talks with China became shaky. U.S. negotiators ended discussions with Beijing, and the potential extension of a pause on higher China tariffs remained uncertain. A postponement of these higher rates won’t be final until President Donald Trump signs off on the plan, U.S. negotiators said.
Investors are awaiting the Federal Reserve’s interest rate announcement Wednesday afternoon. Fed funds futures are pricing in a nearly 98% likelihood of the central bank keeping its key rate at a range of 4.25% to 4.5%.
In Japan, the Nikkei 225 index dipped 0.1% Wednesday, while in Hong Kong, the Hang Seng caved 1.4%
Oil prices skidded 72 cents to $68.49 U.S. a barrel.
Gold prices were up 0.2% at $3,331.03 U.S. per ounce.
