TSX May Start Higher As Global Stocks Rise on Reduced Volatility
Canada's benchmark index looked set to open higher on Tuesday, taking cues from global stocks that rose on the back of decreased market volatility. The FTSE 100 is up 0.46% and the Euro Stoxx 50 0.35%, as confidence in the global economy is stabilizing, Action Economics said.
In commodities, gold dropped again early on Tuesday as a higher US dollar cut demand and investors moved to riskier assets, which could influence material stocks during the session. Conversely, energy stocks may trade in the green, with oil prices recovering ground lost in the previous session, as demand remained solid while the market awaits fresh data on US inventories.
In stocks, eyes will be on NioCorp Developments (NB.TO), which said that the 2019 Feasibility Study update is expected to deliver higher Net Present Value, stronger investment returns, accelerated cash flows, a longer mine life, higher production of all of its planned products in the first 10 years of operation, and a further reduction in execution risk and environmental impacts.
The TSX closed up by 34 points on Monday, led higher by materials and financials.