May 11 (Reuters) - Canada’s main stock index futures were slightly higher on Thursday as oil prices rose after a fall in U.S. inventories and a bigger-than-expected cut in Saudi supplies to Asia helped tighten the market.
However, a downgrade of Canadian banks by ratings agency Moody’s is likely to weigh on investor sentiment.
Moody’s Investor Service on Wednesday downgraded the long-term ratings for six Canadian banks, citing a more challenging operating environment for banks in Canada for 2017 and beyond.
June futures on the S&P TSX index were up 0.04 percent at 7:15 a.m. ET.
Canada’s main stock index rose on Wednesday as higher oil prices supported energy shares, while insurer Sun Life Financial Inc and exchange operator TMX Group Ltd fell after reporting earnings that failed to impress investors.
Statistics Canada’s New House Price Index is scheduled for release at 8:30 a.m. ET.
Dow Jones Industrial Average e-mini futures were down 0.11 percent at 7:15 a.m. ET, while S&P 500 e-mini futures were down 0.17 percent and Nasdaq 100 e-mini futures were down 0.2 percent.
Canadian plane and train maker Bombardier Inc said Executive Chairman Pierre Beaudoin would step down, following shareholder outcry over controversial executive pay hikes, and reported a smaller-than-expected adjusted net loss.
Even as the world’s largest energy companies exit Canada’s high-cost oil sands the country’s top producer Suncor Energy is lining up its next phase of growth in the world’s third-largest crude reserves.
Canadian Tire Corp Ltd reported higher-than-expected quarterly revenue and profit on Thursday, helped by strong demand for its apparel and home products as well as higher margins at its financial business.
Cascades Inc: National Bank of Canada raises rating to “outperform” from “sector perform”
Franco-Nevada Corp: CIBC raises target price to C$105 from C$95
Sun Life Financial Inc: Barclays cuts target price to C$52 from C$54
COMMODITIES AT 7:15 a.m. ET
Gold futures: $1220; +0.22 percent
US crude: $47.98; +1.37 percent
Brent crude: $50.89; +1.33 percent
LME 3-month copper: $5607; +1.94 percent
08:30 Initial jobless claims: Expected 245,000; Prior 238,000
08:30 Jobless claims 4-week average: Prior 243,000
08:30 Continued jobless claims : Expected 1.980 mln; Prior 1.964 mln
08:30 PPI final demand yy for Apr: Expected 2.2 pct; Prior 2.3 pct
08:30 PPI final demand mm for Apr: Expected 0.2 pct; Prior -0.1 pct
08:30 PPI ex food/energy yy for Apr: Expected 1.7 pct; Prior 1.6 pct
08:30 PPI ex food/energy mm for Apr: Expected 0.2 pct; Prior 0.0 pct
08:30 PPI ex food/energy/transport yy for Apr: Prior 1.7 pct
08:30 PPI ex food/energy/transport mm for Apr: Prior 0.1 pct
TSX market report
Canadian dollar and bonds report
Reuters global stocks poll for Canada
Canadian markets directory ($1= C$1.37) (Reporting by Nikhil Kumar in Bengaluru; Editing by Shounak Dasgupta)