Futures for Canada’s main stock index fell on Monday as oil prices retreated on uncertainty about extending large output cuts by the Organization of the Petroleum Exporting Countries and their allies this week, but the index was still tracking its best month in over two decades on vaccine cheer.
The TSX gained 45.22 points to end Friday’s session at 17,396.56. The gain for the week was 377 points, or 2.22%.
The Canadian dollar picked up 0.18 cents Monday at 77.19 cents U.S.
December futures slid 0.5% Monday.
Wells Fargo raised the rating on Enbridge to overweight from equal weight
BTIG cut the rating on Lightspeed POS to neutral from buy
Wells Fargo cut the rating on Pembina Pipeline to equal weight from overweight
On the macroeconomic front, Statistics Canada said municipalities issued building permits worth $8.2 billion in October, down 14.6% from the previous month.
September’s peak was the second highest value on record, with October’s results more in line with recent months.
The agency also said its industrial product price index fell 0.4% in October, driven mainly by lower prices for lumber and other wood products.
The Raw Materials Price Index increased 0.5%, mostly due to higher prices for animals and animal products and crop products.
ON BAYSTREET
The TSX Venture Exchange recovered 3.03 points to finish Friday at 749.20, a hike of 8.75 points on the week, or 1.2%
ON WALLSTREET
Stock futures fell early Monday as investors looked set to cash in some of the historically strong gains logged in November.
Futures for the Dow Jones Industrials Index dropped 139 points, or 0.5%, to 29,735.
Futures for the S&P 500 lost nine points, or 0.2%, at 3,627.75.
Futures for the NASDAQ Composite acquired 29 points, or 0.2%, to 12,286.50
Futures fell after reports that the Trump administration is weighing blacklisting Chinese leading chipmaker SMIC as well as national offshore oil and gas producer CNOOC.
The move would limit their access to American investors and escalate tensions with China before President-elect Joe Biden takes over.
Those losses were trimmed, however, after Moderna said Monday that new trial data showed its Covid-19 vaccine candidate was more than 94% effective. The company added it plans to ask the Food and Drug Administration for emergency clearance later in the day.
Despite the move lower, major equity averages are poised to wrap up a strong month. The blue-chip Dow has risen 12.9% so far this month, on pace for its best monthly performance since January 1987, as promising vaccine developments boosted confidence of a smooth economic reopening.
The S&P 500 moved up 11.3%, and the NASDAQ has climbed11.9%, in November, both on track to post their biggest monthly advance since April.
Still, investors continue to monitor the coronavirus pandemic which has killed more than 266,000 people in the U.S. Dr. Anthony Fauci, the nation’s top infectious disease expert, said on Sunday that the U.S. is heading into a tough period of the pandemic in which restrictions and travel advisories will be necessary.
Overseas, in Japan, the Nikkei 225 dropped 0.8% Monday, while in Hong Kong, the Hang Seng index fell 2.1%
Oil prices lost 37 cents to $45.16 U.S. a barrel.
Gold prices tumbled $17.20 to $1,770.90 U.S.