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

Fri Jan 29, 2016 8:50am EST
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(Adds economic data)

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 0.79 percent at 8:45 a.m. ET.

Oil prices extended gains to trade above $34 a barrel, a gain of some 25 percent from the 12-year lows seen earlier in January, and supported upbeat investors' sentiment.

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 0.69 percent at 8:45 a.m. ET, while S&P 500 e-mini futures were up 0.64 percent and Nasdaq 100 e-mini futures were up 0.47 percent.

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