CANADA STOCKS-Futures higher after BOJ's negative rate move

Fri Jan 29, 2016 7:34am EST
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Jan 29 (Reuters) - Canada's main stock index looked set to follow global markets higher after the Bank of Japan sprang a surprise by taking one of its main interest rates into negative territory.

With consumer inflation just 0.1 percent in the year to December despite three years of aggressive money-printing, the BOJ's policy board decided in a narrow 5-4 vote to charge a 0.1 percent interest on a portion of current account deposits that financial institutions hold with the central bank.

March futures on the S&P TSX index were up 1.04 percent at 7:15 a.m. ET.

Data on gross domestic product and producer prices is due at 8:30 a.m. ET.

Canada's economy is expected to have grown by 0.3 percent in November, underscoring expectations that the fourth quarter was likely weak at best. The Bank of Canada recently forecast that the economy likely stalled in the quarter, not long after the country emerged from the mild recession in the first half of 2015.

The Toronto Stock Exchange's S&P/TSX composite index made sharp gains on Thursday, with energy stocks riding an oil price rally tied to hopes for a deal to clear a global glut, while shares of Bombardier Inc fell further into territory that risks expulsion from the index.

Dow Jones Industrial Average e-mini futures were up 0.80 percent at 7:15 a.m. ET, while S&P 500 e-mini futures were up 0.78 percent and Nasdaq 100 e-mini futures were up 0.61 percent.

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