Canada’s benchmark index looked set to open higher on Wednesday, taking cues from rising commodity prices.
Stock futures for the March quarter on the S&P TSX index were up 0.1% recently.
Action Economics ( AE ) said WTI futures logged a fresh 37-month high of $63.59, breaching yesterday’s peak by $0.06. Prices are up 1% on the day, receiving a push higher by a broad drop in the dollar amid reports that China is considering reducing its purchases of U.S. Treasuries. This follows the weekly API report, out late yesterday, that showed a 11.2 million barrel reduction in U.S. crude inventories in the latest reporting week, which has fed market expectations for a bigger than anticipated draw in the official EIA figure later today. The EIA also raised its 2018 world demand growth forecast by 100,000 barrels per day.
Meanwhile, AE said the dollar index sank another 0.5% to briefly dip below $92, benefiting precious metal prices, although the subsequent mild readings on trade prices did little to revive inflation concerns.
The TSX gained 1.5 points on Tuesday, with the weakness in materials and telecom limiting the climb.
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