Lower Open Foreseen for TSX - InvestingChannel

Lower Open Foreseen for TSX

Futures for Canada’s main stock index tumbled on Tuesday as oil and metal prices ticked lower, with investors wary ahead of a key domestic inflation reading and ongoing Middle East tensions.

The TSX Composite stumbled 159.79 points to conclude Monday trading at 21,740.20.

June futures stumbled 0.7% Tuesday.

The Canadian dollar eased 0.02 cents to 72.51 cents U.S.

Tamarack Valley Energy temporarily shut its oil output production following a fire at a Canadian Natural Resources Ltd gas plant in Alberta, the companies said on Monday.

On the economic slate, Statistics Canada said the Consumer Price Index (CPI) rose 2.9% on a year-over-year basis in March, up from a 2.8% gain in February. On a seasonally adjusted monthly basis, the CPI rose 0.3% in March.

As well, housing starts totaled 242,200 in March, compared to 260,000 in the prior-year month.


The TSX Venture Exchange dipped 11.02 points, or 1.9%, Monday to 576.69.


Dow Jones Industrial Average futures climbed Tuesday, as the 30-stock benchmark looked to snap a six-day losing streak.

Futures for the 30-stock index climbed 234 points, or 0.6%, to 38,227.

Futures for the S&P 500 took on 11.5 points, or 0.2%, to 5,115.50.

Futures for the NASDAQ Composite acquired 32.25 points, or 0.2%, to 17,908.50.

UnitedHealth shares rallied more than 7% in the premarket on the back of better-than-expected revenue for the first quarter. Johnson & Johnson, another Dow member, posted mixed quarterly results, sending shares down slightly.

Morgan Stanley jumped around 2% before the bell after beating Wall Street consensus forecasts on both lines. Despite also surpassing expectations on both lines, Bank of America traded near its flatlines.

Traders will also watch for the latest reading of housing starts and building permits on Tuesday to gain insight into the health of the housing sector. Industrial production data is also set for release before the open.

Wall Street is coming off a choppy day that marked the 30-stock Dow’s sixth straight losing session — its longest negative streak since June.

The blue-chip index erased most of its 2024 gains, a major reversal considering that just weeks ago it approached the key 40,000 level. The S&P 500 and NASDAQ Composite each closed Monday down more than 1%.

Elsewhere, investors were concerned of escalating tensions in the Middle East after Iran’s launch of missiles and drones at Israel on Saturday.

In Japan, the Nikkei 225 slid 1.9% Tuesday, while in Hong Kong, the Hang Seng stumbled 2.1%.

Oil prices dropped 31 cents to $85.10 U.S. a barrel.

Gold prices jumped $6.30 to $2,389.30 U.S. an ounce.

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