Banks to Get Boost from Election
Futures linked to Canada’s main stock index climbed more than 1% on Wednesday, bolstered by positive market sentiment after Republican Donald Trump reclaimed the U.S. presidency.
The TSX gained 131.84 points to close Tuesday at 24,387.90.
December futures soared 1.1% Wednesday.
The Canadian dollar sank 0.4 cents to 71.89 cents U.S.
Trump won the election after defeating Vice President Kamala Harris, making a comeback after being voted out of the White House in 2020.
The win will potentially impact the global economy and markets, especially Canada, the United States’ biggest trading partner.
In corporate news, metals recycler and battery materials producer Umicore will pause the construction of a battery materials plant in Canada.
On the economic slate, Western University’s IVEY School of Business is set this morning (10 a.m. EST) to deliver its PMI for October.
ON BAYSTREET
The TSX Venture Exchange inched up 0.45 points Tuesday to 603.72.
ON WALLSTREET
Stocks were poised for a booming rally Wednesday as Donald Trump won the 2024 presidential election.
Futures for the Dow Jones Industrials popped 1,269.70 points, or 3%, to 43,651. The last time the blue-chip Dow jumped more than 1,000 points in a single day was in November 2022.
Futures for the S&P 500 hiked 123 points, or 2.1%, to 5,935.25.
Futures for the NASDAQ Composite Index thundered higher 308.75 points, or 1.5%, to 20,650.50.
The stock market staged a broad rally Tuesday before the election results were in with the S&P 500 gaining 1.2%, bringing the benchmark’s 2024 gains to more than 21%.
News sources projected that Trump would defeat his Democratic rival, Kamala Harris, after winning 276 Electoral College votes, including key swing states of Pennsylvania, North Carolina and Georgia.
Investments seen as beneficiaries under a Trump presidency erupted as the former president appeared set to claim victory. Tesla, whose CEO Elon Musk is a prominent backer of Trump, saw shares surge 13% in pre-market trading. Bank shares got a boost with JPMorgan, Bank of America and Wells Fargo all jumping at least 6%.
Shares of Trump Media & Technology Group, a social media company closely tied to Trump, surged a whopping 37% in premarket trading.
In Japan, the Nikkei 225 hiked 2.6% Wednesday, while in Hong Kong, the Hang Seng jumped 2.2%.
Oil prices docked 99 cents to $71.00 U.S. a barrel.
Gold prices reversed $35.20 to $2,714.50.