Futures for stocks in Canada’s largest market rose on Monday as investors were relieved the U.S. response to China’s national security legislation in Hong Kong was milder than initially feared.
The S&P/TSX Composite Index dropped 69.9 points to conclude Friday at 15,192.83. The index gained, however, on the week, 279 points, or 1.87%.
The Canadian dollar shot up 0.37 cents early Monday to 72.93 cents U.S.
June futures picked up 0.5% Monday.
Suncor’s CEO says the shift to electric vehicles and other low-carbon technologies could disrupt crude oil demand on a similar scale to the COVID-19 pandemic.
CIBC raised the target price on Aritzia to $22.00 from $19.00
CIBC cut the rating on Canopy Growth to neutral from outperform
RBC raised the target price on Enghouse Systems to $67.00 from $58.00
President Donald Trump on Friday ordered his administration to begin the process of eliminating special U.S. treatment for Hong Kong to punish China, but stopped short of calling an immediate end to privileges that have helped the territory remain a global financial center.
On matters macroeconomic, Markit Canada is out this morning (about 9:30 a.m. EDT) with its manufacturing index for May.
ON BAYSTREET
The TSX Venture Exchange added 9.94 points or 1.8%, to 554.56, on the day, for a leap of more than 17 points on the week, or 3.28%.
ON WALLSTREET
U.S. stock futures pointed to a flat day to begin June trading on Wall Street after consecutive monthly gains.
Futures for Dow Jones Industrials picked up 29 points, or 0.1%, early Monday, to 25,407.
Futures for the S&P 500 nicked up 0.75 points to 3,042.75.
Futures for the NASDAQ Composite sank 21.5 points, or 0.2%, to 9,538.75.
The S&P 500 and Dow each gained at least 3% last week while the NASDAQ advanced 1.8% to close out May. Those gains were propelled by increasing bets by traders that the global economy will successfully reopen after the coronavirus forces a shutdown of most economic activity.
Last week’s gains led the major averages to their first back-to-back monthly advances since late 2019. The Dow advanced 4.3% and S&P 500 gained 4.5%, for May while the NASDAQ advanced 6.8%.
Disappointing trial results from Pfizer for a breast cancer drug dampened market sentiment. The company made the announcement Friday evening. Its shares were down 6% in Monday pre-market trading.
Data showed China’s manufacturing activity in expanding in May. Investors have been monitoring China’s economic data for signs of recovery in the country, where the coronavirus was first reported.
More than six million coronavirus cases have been confirmed globally, including over 1.7 million in the U.S., according to Johns Hopkins University. However, Novavax said last week is started Phase 1 clinical trials for its coronavirus vaccine candidate while Moderna said May 18 its early stage vaccine trial had yielded positive results.
Overseas, in Tokyo, the Nikkei 225 gained 0.8%, Monday, while in Hong Kong, the Hang Sang index vaulted 3.4%.
Oil prices were unchanged at $35.49 U.S. a barrel.
Gold prices dipped $5.40 to $1,746.30.