Futures Erupt on Trade Deal
Futures tied to Canada's benchmark index rose on Wednesday, after U.S. President Donald Trump revived hopes for deals with its trading partners following an agreement with Japan.
The TSX Composite Index collected 47.43 points to close Tuesday trading at 27,364.43.
Futures advanced 0.5% Wednesday.
The Canadian dollar inched up 0.11 cents to 73.61 cents U.S.
Trump struck a trade deal with Japan, lowering tariffs on auto imports and sparing Tokyo from punishing new levies on other goods, in exchange for a $550-billion package of U.S.-bound investment and loans.
Meanwhile, prospects of an EU-U.S. trade agreement improved after Trump said on Tuesday that EU representatives would come for trade negotiations on Wednesday.
The news lifted market sentiment and sparked hopes of more U.S. agreements before the August 1 tariff deadline.
Economically speaking, Statistics Canada reports its new housing price index declined 0.2% on a month-over-month basis in June, down for the third consecutive month. The agency adds prices were down in 12 of the 27 census metropolitan areas surveyed, while prices were unchanged in 10 CMAs and up in the remaining five.
ON BAYSTREET
The TSX Venture Exchange moved ahead 3.58 points to conclude Tuesday at 806.38.
ON WALLSTREET
Stock futures rose Wednesday after President Donald Trump announced the U.S. had reached a trade deal with Japan, lifting hope for further agreements being made.
Futures for the Dow Jones Industrials leaped 177 points, or 0.4%, to 44,888.
Futures for the S&P 500 grabbed 19.25 points, or 0.3%, to 6,366.
Futures for the NASDAQ moved ahead 18 points, or 0.1%, to 23,244.25.
Beyond big tech, investors will also monitor reports from Chipotle Mexican Grill and Mattel after the market closes. These releases come amid a busy earnings week. Of the 105 S&P 500 companies that have reported so far this season, more than 86% have posted earnings that surpassed Wall Street’s expectations.
Trump said in a Truth Social post Tuesday night that the U.S. had completed a “massive Deal” with Japan. The agreement includes “reciprocal” tariffs of 15% on the nation’s exports to the U.S. The president also said the U.S. is meeting with European officials in a push to reach a trade deal with the European Union.
The U.S. has been pushing to reach trade deals with other countries ahead of an Aug. 1 deadline. This comes after Trump on April 2 sent markets into turmoil, with his announcement of sweeping tariffs
On the economics front, traders will follow existing home sales data due Wednesday morning.
In Japan, the Nikkei 225 index rocketed 3.5% Wednesday, while in Hong Kong, the Hang Seng jumped 1.6%
Oil prices waned 46 cents to $64.85 U.S. a barrel.
Gold prices sagged $10.40 to $3,433.30 U.S. an ounce.
