Canadian shares look headed for a flat start on Wednesday, with investors looking for direction. Higher gold prices may trigger some buying in the materials space.
Amid U.S.-China trade war tensions, investors across the globe are wary of making big moves, and the trend is unlikely to be any significantly different today.
Canada’s Foreign Affairs Minister Chrystia Freeland flew back to Washington on Tuesday to resume talks on NAFTA, with U.S. Trade Representative Robert Lighthizer.
On Tuesday, the benchmark S&P/TSX Composite Index ended up 113.73 points, or 0.71%, at 16,196.04, after scaling a low of 16,091.45 and a high of 16,198.67 in the session.
In company news, Aurora Cannabis Inc. (ACB.TO) today announced that it has completed its previously announced distribution of Australis shares and warrants. The Australis shares and warrants will commence trading on the CSE under the symbol “AUSA” effective at the market open today.
Premium Brands Holdings Corporation (PBH.TO) has announced the successful completion of the acquisition of Ready Seafood Co., one of the leading processors, distributors and marketers of lobsters in the U.S.
Gear Energy Ltd. (GXE.TO) has announced that it has successfully completed the acquisition of Steppe Resources Inc., a private oil and gas company.
Asian markets ended mostly higher on Wednesday amid hopes that China will increase economic stimulus to soften the blow of the higher U.S. tariffs. Higher oil prices also underpinned investor sentiment.
European markets were steady on speculation that China will increase economic stimulus and on hopes China and the U.S. will resume contentious trade talks after the latest tariff round.
In economic news from Europe, U.K. consumer price inflation increased unexpectedly to 2.7% in August from 2.5% in July, a government report showed. This was the highest rate since January.
A report from the European Central Bank said the euro area current account surplus decreased in July largely due to a fall in visible trade surplus. The current account surplus fell to a seasonally adjusted EUR 21 billion in July from EUR 24 billion in June.
The surplus on trade in goods decreased to EUR 19 billion from EUR 23 billion a month ago. Meanwhile, the services surplus rose to EUR 12 billion from EUR 9 billion.
In the 12 months to July, the current account registered a surplus of EUR 394 billion or 3.5% of euro area GDP, compared with EUR 358 billion or 3.3% of euro area GDP in the previous 12-month period, the report showed.
Meanwhile, Eurozone construction output grew at a slower pace of 0.3% in July, reflecting contraction in civil engineering, Eurostat reported Wednesday. That was slower than the 0.7% increase in June.
In commodities, crude oil futures for October were declining marginally at $69.52 a barrel, ahead of official inventory data from U.S. Energy Information Administration.
According to a report released by the American Petroleum Institute on Tuesday evening, U.S. crude stocks increased by 1.2 million barrels to 397.1 million in the week to September 14. The market was expecting a drop in crude stockpiles.
Gold futures for December were up $4.40, or 0.37%, at $1,207.30 an ounce.
Silver futures for December were gaining $0.035, or 0.25%, at $14.220 an ounce, while Copper futures were little changed at $2.730 per pound.
by RTTNews Staff Writer
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