(Reuters) – Futures tied Canada’s main stock index edged up on Wednesday, with investors focused on strong quarterly results from the top domestic lenders.
December futures on the S&P/TSX index were up 0.16% at 6:54 a.m. ET (11:54 a.m. GMT).
Royal Bank of Canada reported a rise in fourth-quarter profit as the country’s biggest lender benefited from strong performance in its personal banking business.
Meanwhile, the National Bank of Canada also reported higher quarterly profit, helped by solid performance in its wealth management unit.
Among sectors, energy was in focus as oil prices firmed slightly, with traders expecting OPEC+ to announce an extension to supply cuts this week, while heightened geopolitical tensions continue to dominate market sentiment. [O/R]
The materials sector also grabbed attention as gold and copper prices eased amid a marginal recovery in the U.S. dollar. [GOL/] [MET/L]
The composite index ended near a record closing high on Tuesday as gains in mining outweighed a drop in Bank of Nova Scotia following disappointing results.
Across the border, the focus will be on the U.S. Federal Reserve Chair Jerome Powell’s speech later in the day, which could offer clues on the interest rate decision at the Dec. 17-18 policy meeting.
Additionally, November private payrolls data, due at 8:15 a.m. ET, along with the highly anticipated November employment report on Friday, could also influence the Fed decision.
Traders see about a 72.7% chance of the Fed reducing interest rates by 25 basis points.
Meanwhile, Greater Toronto Area home sales rose for the fourth straight month in November and prices climbed to a one-year high as lower borrowing costs encouraged buyers to move off the sidelines.
COMMODITIES
Gold: $2645.12; +0.06% [GOL/]
US crude: $70.09; +0.21% [O/R]
Brent crude: $73.85; +0.31% [O/R]
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($1 = 1.4057 Canadian dollars)
(Reporting by Ragini Mathur and Nikhil Sharma; Editing by Vijay Kishore)