Futures for stocks in Canada’s largest centre rose on Tuesday, as oil prices jumped amid hopes of recovery in vehicle traffic and fuel demand as countries eased coronavirus-led restrictions.
The S&P/TSX Composite Index gained 124.7 points to close Monday at 14,745.04.
The Canadian dollar jumped 0.27 cents early Tuesday to 71.28 cents U.S.
June futures advanced 0.7% Tuesday.
Thomson Reuters reported higher quarterly sales and operating profit that fell slightly short of Wall Street estimates on Tuesday, while cutting its full-year sales outlook due to disruption to the global economy from the coronavirus pandemic.
Altacorp Capital cut the target price on Air Canada to $46.00 from $50.00
National Bank of Canada cut the target price on Capital Power Corp. to $39.00 from $42.00
TD Securities raised the target price on Kinaxis to $165.00 from $130.00
Italy, Spain, Nigeria and India, together with Ohio and other U.S. states, began allowing some people to go back to work and opened up construction sites, parks and libraries.
On the economic slate, Statistics Canada says this country’s merchandise exports fell 4.7%, while imports declined 3.5%. As a result, Canada’s trade deficit widened from $894 million in February to $1.4 billion in March.
ON BAYSTREET
The TSX Venture Exchange gained 2.97 points Monday to 476.06.
ON WALLSTREET
U.S. stock futures rose in early trading Tuesday as investors bet the U.S. economy could start to reopen again. Oil prices increased for a fifth-straight day.
Futures for Dow Jones Industrials galloped 316 points, or 1.3%, early Tuesday to 23,887.
Futures for the S&P 500 jumped 36.75 points, or 1.3%, at 2,862.
Futures for the NASDAQ Composite leaped 124 points, or 1.4%, to 8,919.50.
Oil prices climbed 10% in early trading on hope the economy has bottomed. It was the fifth-straight day of gains for crude, a market that has been in turmoil with prices turning negative at one point last month. Crude is up 19% so far in May. Energy stocks like Marathon Petroleum were the biggest gainers in premarket trading Tuesday.
Shares of companies that would benefit from a reopening of the economy, such as Starbucks, MGM and Ford, also gained in premarket trading.
The overnight moves followed Monday’s modest gains on Wall Street. Strength in the biggest U.S. technology companies including Microsoft, Apple, Amazon, and Netflix lifted the broad market out of negative territory. The S&P 500 closed the session 0.4% higher, while the Nasdaq jumped 1.2%.
Those tech shares were higher again in early trading Tuesday.
Investors weighed fears of a second wave of coronavirus cases against efforts to reopen businesses and loosen restrictions. California Gov. Gavin Newsom said Monday some of the state’s retailers will be allowed to offer curbside pickup starting Friday.
Meanwhile, New York Gov. Andrew Cuomo said that the daily number of hospitalizations and new deaths are declining, suggesting the state is on “the other side of the mountain.” He added, however, that officials are not seeing as steep of a decline as they had hoped.
Internationally, tensions between China and the U.S. appeared to have flared up again. Secretary of State Mike Pompeo on Sunday said there was “a significant amount of evidence” of the coronavirus originating in a Wuhan lab. President Donald Trump previously said he was considering imposing tariffs on China for its handling of the outbreak.
Overseas, markets in Hong Kong enjoyed a recovery, with the Hang Sang index gaining 1.1%, while those in Tokyo remained shut down for holiday.
Oil prices hiked $2.08 to $22.47 U.S. a barrel.
Gold prices dipped $10.30 to $1,715.40 U.S. an ounce.