May 2 (Reuters) - Stock futures pointed to a flat opening for Canada’s main stock index on Tuesday ahead of the U.S. Federal Reserve’s meeting even as oil prices surged on hopes that major OPEC exporters would extend output cuts into the second half of the year.
Benchmark Brent crude was up 1.07 percent at $52.07 a barrel by 0715 GMT and U.S. light crude rose 0.8 percent at $49.23 per barrel.
The Fed begins its two-day meeting later on Tuesday and is widely expected to stand pat on interest rates.
June futures on the S&P TSX index were nearly flat at 7:15 a.m. ET.
Canada’s main stock index dipped marginally on Monday, pulled lower in part by acquisition news from Pembina Pipeline Corp and broad declines among mining companies.
Dow Jones Industrial Average e-mini futures were down 0.07 percent at 7:15 a.m. ET, while S&P 500 e-mini futures were down 0.05 percent and Nasdaq 100 e-mini futures were up 0.06 percent.
Encana Corp, Canada’s No. 2 oil and natural gas producer, reported a better-than-expected operating profit for the first quarter on Tuesday, helped by a rise in oil and gas prices.
Canada’s WestJet Airlines Ltd on Tuesday reported a 45 percent fall in quarterly profit, as higher fuel costs squeezed margins.
Sumitomo Corp said on Tuesday it and Korea Resources Corp (Kores) will get a larger stake in the Ambatovy nickel project in Madagascar, as part of a debt restructuring deal with partner Sherritt International Corp.
ANALYST RESEARCH HIGHLIGHTS
Finning International: Canaccord Genuity raises rating to “buy” from “hold”.
Sleep Country Canada: National Bank of Canada starts coverage with “outperform” rating.
Genworth MI Canada: National Bank of Canada resumes coverage with “sector perform” rating.
COMMODITIES AT 7:15 a.m. ET
Gold futures: $1,256.3; +0.1 pct
US crude: $52.07; +1.07 pct
Brent crude: $49.23; +0.8 pct
LME 3-month copper: $5,771.00; +0.6 pct
U.S. ECONOMIC DATA DUE ON TUESDAY
0945 ISM-New York Index for Apr: Prior 735.1
0945 ISM NY Business Conditions for Apr: Prior 56.5
1530 Domestic car sales for Apr: Expected 4.70 mln; Prior 4.59 mln
1530 Total vehicle sales for Apr: Expected 17.20 mln; Prior 16.62 mln
1530 Domestic truck sales for Apr: Expected 8.60 mln; Prior 8.65 mln
1530 All car sales for Apr: Prior 6.32 mln
1530 All truck sales for Apr: Prior 10.30 mln
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$1.37) (Reporting by Astha Rawat in Bengaluru; Editing by Saumyadeb Chakrabarty)
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