Futures tied to Canada's main stock index edged higher on Tuesday, supported by crude prices, as cautious investors awaited the outcome of the high-stakes U.S. presidential election.
The TSX poked up 0.9 points to close Monday at 24,156.87.
December futures pointed upward 0.3% Tuesday.
The Canadian dollar gained 0.09 cents to 72.02 cents U.S.
While it could take days to declare the final winner, key focus will be on the battleground states of Georgia, North Carolina, Pennsylvania, Michigan, Arizona, Wisconsin and Nevada.
With the United States being Canada's biggest trading partner, the election outcome could have significant impact on the Canadian economy and will be closely watched by domestic investors.
In corporate news, Sun Life reported a better-than-expected third-quarter profit as Canada's second-largest life insurer benefited from robust growth in its domestic and U.S. businesses.
On the economic scene, Statistics Canada reported this country’s merchandise exports decreased 0.1%, while imports fell 0.4%. Consequently, Canada's merchandise trade deficit with the world narrowed from $1.5 billion in August to $1.3 billion in September.
Also, minutes of the Bank of Canada's October policy meeting, which resulted in a 50-basis-point interest-rate cut, would give more insights into the country's policy easing cycle.
ON BAYSTREET
The TSX Venture Exchange subtracted 0.68 points Monday to 603.27.
ON WALLSTREET
Stock futures rose slightly Tuesday ahead of a high-stakes U.S. presidential election.
Futures for the Dow Jones Industrials advanced 19 points, or 0.1%, to 41,975.
Futures for the S&P 500 gained 8.25 points, or 0.1%, to 5,751.50.
Futures for the NASDAQ Composite Index tallied 56 points, or 0.3%, to 20,142.
The latest poll from NBC News suggests the race is “neck and neck” between former President Donald Trump and Vice President Kamala Harris. Close attention also remains on which party dominates Congress, given that a sweep by Republicans or Democrats could contribute to drastic spending changes or a big revamp of tax policy.
The results could have a significant effect on where stocks end the year, but investors may want to brace for some near-term choppiness.
Data going back to 1980 suggests the major averages gain between Election Day and the end of the year, but typically fall in the session and week after. Uncertainty over the results could lead to even more shakiness in the market.
Beyond the election, investors await the Federal Reserve’s November rate decision due Thursday and fresh commentary from Chair Jerome Powell on the central bank’s policy moves going forward. Traders are pricing in 98% odds of a quarter-point cut following September’s half-point reduction.
On the earnings front, Palantir popped 12% in the premarket on strong quarterly results and upbeat revenue guidance, while NXP Semiconductors fell 5% on a soft outlook due to macro concerns.
In Japan, the Nikkei 225 hiked 1.1% Tuesday, while in Hong Kong, the Hang Seng leaped 2.1%.
Oil prices added 43 cents to $71.90 U.S. a barrel.
Gold prices inched ahead 30 cents to $2,746.50.
