Futures for Canada’s main stock index rose sharply on Wednesday as rising oil prices boosted energy shares, while investors were split over an upcoming interest rate decision by the central bank.
The S&P/TSX Composite recovered 19.68 points to close Tuesday at 20,590.98.
The Canadian dollar hiked 0.33 cents to 79.58 cents U.S.
March futures jumped 0.9% Wednesday.
National Bank of Canada raised the price target on Canadian National Railway to $172 from $170
CIBC raised the target price on First National Financial to $46.00 from $44.00
National also raised the target price on Metro to $72.00 from $71.00
The Bank of Canada is set this morning (about 10 a.m. EST) to announce its interest rate decision. Some experts believe the central bank will raise its trendsetting rate by a quarter-percentage point, its first such hike since October 2018.
The TSX Venture Exchange recovered 8.8 points, or 1.1%, Tuesday to 847.21.
Stock futures rose Wednesday following another wild session for the market as investors await results from a Federal Reserve meeting expected to set the tone for 2022.
Futures for the Dow Jones Industrials jumped 307 points, or 0.9%, to 34,492.
Futures for the S&P 500 popped 55 points, or 1.3%, to 4,404.
Futures for the NASDAQ raced ahead 260.25 points, or 1.8%, to 14,401.
Microsoft shares rose 4.3% in early morning trading after the company issued better-than-expected quarterly revenue guidance. Boeing was marginally higher after the aircraft maker reported positive cash flow for the first time since 2019, but took a $3.5 billion pre-tax charge on its 787 Dreamliner program.
Tesla shares popped 3.6% with the electric vehicle marker slated to report earnings after the bell. Moderna rallied 2.8% in the pre-market, rebounding after falling for eight straight days.
The Fed is set to conclude its two-day policy meeting Wednesday and make an announcement in the afternoon. The central bank is not expected to make any policy changes, but investors will look for clues on when — and by how much — the Fed will raise interest rates later this year. Market participants will also look for hints on further steps the Fed will take to unwind pandemic-era aid.
Recent market volatility is unlikely to deter the Fed from implementing as much as four or more interest rate hikes this year.
Overseas, in Japan, the Nikkei 225 slid 0.4% Wednesday while the Hang Seng in Hong Kong carved out a gain of 0.2%.
Oil prices gathered 77 cents to $86.37 U.S. a barrel.
Gold prices faltered $5.70 to $1,846.80 U.S. an ounce.