May 25, 2017 / 11:33 AM / 2 months ago

CANADA STOCKS-Futures gain as Fed signals caution on rate hikes

3 Min Read

May 25 (Reuters) - Futures pointed to a higher opening for Canada's main stock index on Thursday after the U.S. Federal Reserve signaled caution in raising interest rates.

Policymakers agreed on Wednesday that they should hold off on increasing rates until it was clear a recent slowdown in the U.S. economy was temporary, though most said a hike was coming soon.

June futures on the S&P TSX index were up 0.20 percent at 7:15 a.m. ET.

Canada's main stock index lost ground on Wednesday, weighed by a sharp fall in shares of Bank of Montreal after it reported disappointing earnings, with investors also shying away from other major banks ahead of their quarterly results.

Dow Jones Industrial Average e-mini futures were up 0.32 percent at 7:15 a.m. ET, while S&P 500 e-mini futures were up 0.26 percent and Nasdaq 100 e-mini futures were up 0.34 percent.

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Top Stories

Royal Bank of Canada reported an 11 percent increase in second-quarter earnings, beating market forecasts, helped by a strong performance in its capital markets and wealth management businesses.

Toronto-Dominion Bank reported second-quarter results which were ahead of market expectations, helped by a strong performance at its retail and investment banking businesses.

Canadian Imperial Bank of Commerce, Canada's fifth-biggest lender, reported a better-than-expected second-quarter profit, helped by growth across its businesses.

Analyst Research Highlights

Dollarama Inc: RBC raises target price to C$138 from C$133

Bank of Montreal: CIBC cuts target price to C$105 from C$109

Prairiesky Royalty Ltd: RBC raises target price to C$38 from C$34

COMMODITIES AT 7:15 a.m. ET

Gold futures: $1,258.3; +0.47 pct

US crude: $50.61; -1,46 pct

Brent crude: $53.31; -1.2 pct

LME 3-month copper: $5,687.50; +0.1 pct

u.s. Economic Data Due on Thursday

08:30 Advance goods trade balance for April: Prior -64.23 bln

08:30 Advance Wholesale Inventory for April: Prior 0.2

08:30 Advance Retail Inventory Ex Auto for April: Prior 0.3

08:30 Initial jobless claims: Expected 238,000; Prior 232,000

08:30 Jobless Claims 4-week Average: Prior 240,750

08:30 Continued jobless claims: Expected 1.925 mln; Prior 1.898 mln

11:00 KC Fed Manufacturing for May: Prior 12

11:00 KC Fed Composite Index for May: Prior 7

For Canadian Markets News, Click on Codes:

TSX market report

Canadian dollar and bonds report

Reuters global stocks poll for Canada

Canadian markets directory ($1= C$1.34) (Reporting by Sai Sharanya Khosla in Bengaluru; Editing by Sriraj Kalluvila)

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