(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.
Canadian economic growth edged up in November on an increase in oil and gas extraction and greater wholesale and retail trade, Statistics Canada said on Friday, but the modest improvement still pointed to a fourth quarter that was likely underwhelming.
U.S. economic growth braked sharply in the fourth quarter as businesses stepped up efforts to reduce an inventory glut and a strong dollar and tepid global demand weighed on exports.
Canadian producer prices slipped in December for the fifth month in a row, driven mainly by lower prices for energy and petroleum products, data from Statistics Canada showed on Friday.
COMMODITIES AT 8:45 a.m. ET
Gold futures : $1,115.20; -0.04 pct
US crude : $33.71; +1.48 pct
Brent crude : $34.27; +1.15 pct
LME 3-month copper : $4,555.50; +0.55 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: Actual -61.5 bln; Prior -60.50 bln
0830 GDP advance for Q4: Actual 0.7 pct; Prior 2.0 pct
0830 GDP sales advance for Q4: Actual 1.2 pct; Prior 2.7 pct
0830 GDP consumer spending advance for Q4: Actual 2.2 pct; Prior 3.0 pct
0830 GDP deflator advance for Q4: Actual 0.8 pct; Prior 1.3 pct
0830 Core PCE prices advance for Q4: Actual 1.2 pct; Prior 1.4 pct
0830 PCE prices advance for Q4: Actual 0.1 pct; Prior 1.3 pct
0830 Employment wages qq for Q4: Actual 0.6 pct; Prior 0.6 pct
0830 Employment benefits qq for Q4: Actual 0.7 pct; Prior 0.5 pct
0830 Employment costs for Q4: Actual 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$1.42) (Reporting by Nikhil Kumar in Bengaluru; Editing by Maju Samuel)
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