Canada's benchmark index looked set to open higher on Tuesday, lifted by rising commodity prices and as investor fears of a global trade war receded.
Action Economics ( AE ) said prices are a little north of the midway point of the choppy range that has been seen over the last month, which is a consolidation after crude prices saw 38-months in January. Oil markets are buoyant in the wake of IEA's prognosis, given yesterday, that global demand will rise over the next five years while OPEC supply would lift at a much slower pace. Weekly U.S. inventory data is due later today from API, ahead of the EIA report tomorrow. Inventories are expected to show a second consecutive week of gains, according to a Reuters survey, which, along with ongoing expectations for rising U.S. shale production, should keep crude market two sided.
Meanwhile, AE said gold futures have rallied to US$1,329.20, up from overnight lows of US$1,321.40, as the dollar takes another step lower. The U.S. currency has dropped to six-session lows of 89.64. The global trade story continues to be a market driver, and gold will be a beneficiary should the Trump tariffs become a reality.
The TSX climbed 156 points on Monday, paced by healthcare, energy, and materials.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
