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.
Brookfield Asset Management Inc has been exploring an acquisition in recent months of General Growth Properties Inc (GGP), the U.S. mall operator with a market value of $24 billion, according to people familiar with the matter.
Miner Endeavour Silver Corp will reduce production of the precious metal this year by more than a quarter because of low prices, the company said on Thursday.
COMMODITIES AT 7:15 a.m. ET
Gold futures : $1,112.90; -0.24 pct
US crude : $33.50; +0.71 pct
Brent crude : $34.13; +0.71 pct
LME 3-month copper : $4,547.00; +0.38 pct
ANALYST RESEARCH HIGHLIGHTS
Athabasca Oil Corp : Raymond James raises rating to “outperform” from “market perform”
Endeavour Silver Corp : BMO cuts rating to “underperform”
WestJet Airlines Ltd : BofA Merrill cuts rating to “underperform” from “neutral”
U.S. ECONOMIC DATA DUE ON FRIDAY
0830 Advance goods trade balance for Dec: Prior -60.50 bln
0830 GDP advance for Q4: Expected 0.8 pct; Prior 2.0 pct
0830 GDP sales advance for Q4: Expected 1.7 pct; Prior 2.7 pct
0830 GDP consumer spending advance for Q4: Prior 3.0 pct
0830 GDP deflator advance for Q4: Expected 0.8 pct; Prior 1.3 pct
0830 Core PCE prices advance for Q4: Expected 1.2 pct; Prior 1.4 pct
0830 PCE prices advance for Q4: Expected 0.7 pct; Prior 1.3 pct
0830 Employment wages qq for Q4: Prior 0.6 pct
0830 Employment benefits qq for Q4: Prior 0.5 pct
0830 Employment costs for Q4: Expected 0.6 pct; Prior 0.6 pct
0945 Chicago PMI for Jan: Expected 45.0; Prior 42.9
0955 U Mich sentiment final for Jan: Expected 93.0; Prior 93.3
0955 U Mich conditions final for Jan: Expected 105.5; Prior 105.1
0955 U Mich expectations final for Jan: Expected 84.5; Prior 85.7
0955 U Mich 1 year inflation final for Jan: Prior 2.4 pct
0955 U Mich 5-year inflation final for Jan: Prior 2.7 pct
1030 ECRI Weekly Index: Prior 130.2
1030 ECRI weekly annualized: Prior -1.9 pct
FOR CANADIAN MARKETS NEWS, CLICK ON CODES:
TSX market report
Canadian dollar and bonds report
Reuters global stocks poll for Canada
Canadian markets directory ($1= C$1.32) (Reporting by Nikhil Kumar in Bengaluru; Editing by Maju Samuel)
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