Ukraine Invasion Felt on N.A. Markets - InvestingChannel

Ukraine Invasion Felt on N.A. Markets

Futures for Canada’s main stock index fell more than 1% on Thursday, tracking global markets, after Russian President Vladimir Putin launched an invasion of Ukraine.

The S&P/TSX index reversed 163.65 points to close Wednesday at 20,744.17.

Futures tumbled 1.5% Thursday.

Teck Resources reported a better-than expected fourth-quarter profit on Thursday, driven by higher prices for copper and steelmaking coal.

National Bank raised the price target on Boralex to $42.00 from $41.00.

CIBC raised the target price on Dream Unlimited to $52.00 to $37.00

National then raised the rating on Stantec to outperform from sector perform.

On the economic calendar, Statistics Canada the number of employees receiving pay or benefits from their employer rose by 122,200, or 0.7%, in December, the seventh consecutive monthly increase.

The Bank of Canada will raise interest rates by 25 basis points on March 2, earlier than previously thought and ahead of the U.S. Federal Reserve, according to economists surveyed in a Reuters poll, which also showed expectations that rates will be higher by year-end than previously thought.

ON BAYSTREET

The TSX Venture Exchange fell short 0.07 points to 828.62.

ON WALLSTREET

U.S. stock futures fell sharply Thursday as Russia attacked Ukraine, causing global energy prices to jump and sending investors fleeing for the safety of fixed income assets.

Futures for the Dow Jones Industrial Index were pounded 844 points, or 2.6%, to 32,222.

Futures for the S&P 500 index fell 115 points, or 2.7%, to 4,106.75.

Futures for the NASDAQ Composite Index plummeted 466 points, or 3.5%, to 13,041.50.

Moscow launched the military action in Ukraine overnight Thursday. There were reports of explosions and missile strikes on several key Ukrainian cities including its capital, Kyiv. Russian President Vladimir Putin called the invasion “the demilitarization” of Ukraine and said Russia’s plans do not include the occupation of Ukrainian territories.

Energy companies surged amid the rising prices. Devon Energy was up 5% and Chevron rose 4.2% in premarket trading.

Bank stocks were among the big early losers, with Bank of America down 4% and Bank of New York Mellon slumping 6.3% in pre-market trading. Economically sensitive companies also took a hit, with Deere and Delta Air off 5% and cruise line operator Carnival sliding 6.2%.

In earnings, several big companies are scheduled to report Thursday. Alibaba ticked 5% lower in early trading after it reported its slowest-ever growth in quarterly revenue since going public in 2014, with sales falling below analyst forecasts as competition intensified

On the economic data front, investors are looking ahead to GDP and jobless claims before the opening bell and new home sales figures later in the morning Thursday.

In Japan, the Nikkei 225 returned to trading Thursday with a loss of 1.8%, while the Hang Seng lost 3.2%.

Oil prices rocketed $7.23 to $99.33 U.S. a barrel.

Gold prices jumped $55.60 to $1,966 U.S. an ounce.

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