Canada’s main stock index opened higher on Wednesday, with energy stocks leading broader gains, ahead of revised U.S. payrolls data and release of the Federal Reserve’s July meeting minutes.
The TSX Composite Index regained 27.68 points, to kick off Wednesday at 23,065.12.
The Canadian dollar revived cents to 73.42 cents U.S.
In corporate news, Brookfield Asset Management asked banks to backstop nearly $10.6 billion of debt for the potential takeover of Spanish pharmaceutical firm Grifols, according to a Bloomberg report.
Brookfield shares handed back a dime to $54.28.
On the economic calendar, Statistics Canada said July’s Industrial Product Price Index was unchanged month over month and rose 2.9% on a yearly basis. The Raw Materials Price Index rose 0.7% month over month in July and increased 4.1% year over year.
ON BAYSTREET
The TSX Venture Exchange gained 0.47 points to 571.81.
Eight of the 12 TSX subgroups were higher, with consumer staples, health-care and industrials each growing 0.5%.
The four laggards were weighed most by gold, slumping 1%, while materials dropped 0.3%, and utilities lost 0.1%.
ON WALLSTREET
The S&P 500 inched higher on Wednesday as traders looked ahead to minutes from the Federal Reserve’s latest policy meeting — seeking further insight into the prospect of an interest rate cut.
The Dow Jones Industrial index inched higher 5.39 points to start the mid-week session at 40,840.36.
The much-broader index recovered 19.12 points to 5,616.24.
The NASDAQ raced 98.14 points to 17,915.07.
Target jumped more than 15% after reporting earnings for the fiscal second quarter that exceeded Wall Street’s expectations. But fellow retailer Macy’s dropped more than 12% on a lowered full-year sales forecast.
The Fed minutes are slated for release at 2 p.m. ET. The central bank kept rates unchanged at its last meeting but said it has seen progress in lowering inflation. Investors will look for more clues on future policy moves — especially in September — as market participants remain all but certain of a loosening cycle beginning in the near future.
Traders are pricing in a 100% chance of a rate cut next month. To be sure, the Street is split over how big the reduction will be.
Prices for the 10-year Treasury stayed put, keeping yields at Tuesday’s 3.81%. Treasury prices and yields move in opposite directions.
Oil prices regained 40 cents at $73.57 U.S. a barrel.
Gold prices sagged $1.60 to $2,536.
