Bay Street Seen Opening On Positive Note

(RTTNews) - Higher futures, firm global cues and rising optimism about U.S.-China trade negotiations point to a positive start on Thursday.

Asian and European stocks gained on news of monetary policy easing by China helped underpin investor sentiment. The People's Bank of China said it would cut banks' reserve requirement ratio by 50 basis points on January 6, freeing up more than US$ 100 billion for loans to small businesses.

U.S. President Donald Trump said earlier this week that an initial trade deal with China would be signed on January 15 at the White House, and that he would later travel to Beijing to begin negotiations on the next phase.

On the economic front, data on Canada's manufacturing activity for the month of December is due at 9:30 AM ET.

On Tuesday, the benchmark S&P/TSX Composite Index, which dropped to a low of 17,027.40, recovered to close at 17,063.43, but still posted a loss of 35.13 points, or 0.21%, for the session. The market remained shut on Wednesday for New Year's Day holiday.

In company news, Enghouse Systems Limited (ENGH.TO) announced it has acquired Dialogic Group Inc. for a purchase price of approximately $52.0 million. Dialogic's revenue over the next twelve months is projected to be between $58.0 million and $63.0 million.

Bank of Nova Scotia (BNS.TO) reported on Wednesday that it has completed the previously announced sale of its banking operations in Puerto Rico and the U.S. Virgin Islands to Oriental Bank, a subsidiary of OFG Bancorp.

Asian stocks ended mostly higher on Thursday on trade deal hopes.

European stocks are rising amid optimism about a U.S.-China trade deal, and monetary policy easing by the People's Bank of China.

In what could be a major milestone in a bilateral trade war, Trump also said that he would later travel to Beijing to begin talks on the next phase of the agreement.

In commodities, West Texas Crude Oil futures for February are down marginally at $61.02 a barrel.

Gold futures for February are rising $3.00, or 0.2%, at $1,526.10 an ounce.

Silver futures for March are gaining $0.65, or 0.37%, at $17.991 an ounce, while Copper futures for March are up $0.0085, or 0.3%, at $2.8055 per pound.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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