TSX Set for Strong Start on Oil Boost, But Soft Earnings Could Weigh
Canada's benchmark index looks set for another session of gains, boosted by oil prices . However, soft earnings from big players PotashCorp (POT.TO), Goldcorp (G.TO), Cameco (CCO.TO), Bombardier (BBD-B.TO), and Progressive Waste Solutions (BIN.TO) may limit the index's climb.
Stock futures for the September quarter on the S&P TSX index were down by a mere 0.04% recently.
Prices for both Brent crude and the WTI crude were higher on Thursday after data showed declining U.S. production. Brent rose 1.18% to US$54.01 a barrel, while the WTI edged up 0.29% to US$48.93 a barrel.
Meanwhile, Goldcorp, PotashCorp, and Cameco all reported quarterly results that were below analysts' forecasts, which are expected to put the stocks under pressure during the session. Bombardier also had a weak quarter and announced the delay in the launching of its new Global 7000 jets due to challenges in the development of the aircraft.
The TSX surged 224 points at closing on Wednesday after the U.S. Federal Reserve kept key rates unchanged and pointed to a stronger U.S. economy.
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