Futures for Canada’s main stock index rose on Tuesday, supported by higher gold prices, while investors also tracked upbeat risk sentiment on the Wall Street with U.S. banks reporting better-than-expected earnings.
The TSX gained 15.42 points to close Monday at 20,579.91. On the week, the index gained 383 points, or 1.9%.
June futures on the S&P/TSX index hiked 0.4% Tuesday morning.
The Canadian dollar eked ahead 0.08 cents to 74.84 cents U.S.
In company news, U.S.-listed shares of Bellus Health surged 97.6% in premarket trade as GSK Plc plans to buy the Canada-based drug developer in an all-cash deal for $2 billion.
B2Gold said it has started the phased closure of its Otjikoto open-pit mine in Namibia because of its depleted gold resource.
On the economic calendar, the Consumer Price Index rose 4.3% on a year-over-year basis in March, following a 5.2% increase in February. On a seasonally adjusted monthly basis, the CPI rose 0.1% in March.
ON BAYSTREET
The TSX Venture Exchange settled 6.19 points Monday to finish at 631.69.
ON WALLSTREET
Stock futures rose Tuesday morning, boosted by an important round of first-quarter earnings results that topped Wall Street expectations and suggested many companies are faring better than feared despite a tough economic backdrop.
Futures for the Dow Jones Industrials advanced 37 points, or 0.1%, at 34,166.
Futures for the S&P 500 grabbed 17 points, or 0.4%, to 4,193.75.
Futures for the NASDAQ Composite recovered 92 points, or 0.7%, to 13,278.50.
The moves came after the major averages gained to kick off a stacked week of corporate earnings.
Bank of America added about 2% before the bell after surpassing first-quarter expectations on the top and bottom lines as rates rose. Johnson & Johnson’s results beat estimates and the drugmaker raised its 2023 guidance, lifting the Dow member 1% in premarket trading.
Some of Tuesday’s bullish sentiment was dented after Goldman Sachs reported lighter-than-expected first-quarter revenue, dragged down by a $470 million hit from its Marcus loans. Shares slumped more than 3% premarket.
On the economic front, traders are watching for the latest housing starts and building permits data. March housing starts are expected to fall 3.4% to 1.40 million units, according to consensus estimates from Dow Jones.
March building permits data is forecasted to drop 4.9% to 1.45 million units, according to economists polled by Dow Jones.
In Japan, the Nikkei 225 gained 0.5% Tuesday, while in Hong Kong, the Hang Seng fell 0.6%.
Oil prices skidded 39 cents to $80.44 U.S. a barrel.
Gold prices jumped $9.60 to $2,016.80 U.S. an ounce.