March 10 (Reuters) - Canada’s main stock index futures rebounded on Tuesday as oil prices gained on hopes of economic stimulus and possible OPEC talks.
March futures on the S&P/TSX index were up 4.57% at 7:00 a.m. ET.
The Toronto Stock Exchange’s S&P/TSX index closed down 10.27% at 14,514.24 on Monday, its biggest drop since the October 1987 stock market crash.
The recovery in oil prices comes a day after their biggest rout in nearly 30 years, as investors eyed the possibility of economic stimulus and Russia signaled that talks with OPEC remained possible.
Dow Jones Industrial Average e-mini futures were up 4.14% at 7:00 a.m. ET, while S&P 500 e-mini futures were up 4.34% and Nasdaq 100 e-mini futures were up 4.54%.
Canadian banks have increased oil and gas lending at about double the rate of total business loan growth over the past three quarters, raising the prospect of higher loan losses after Monday’s oil price crash.
The country’s federal budget may be delayed and the deficit likely will be higher than expected as oil prices slump and the coronavirus spreads, economists said on Monday.
Cenovus Energy on Tuesday announced a near 32% cut to its capital spending for the year and a temporary suspension of its crude-by-rail program as an erupting Saudi-Russia oil price war dealt a blow to the struggling Canadian oil industry.
A Royal Bank of Canada employee working at one of the lender’s suburban Toronto offices, who was earlier suspected of having contracted coronavirus, has tested positive, a spokeswoman told Reuters on Monday.
A senior U.S. envoy on Monday pressed Canada about Ottawa’s forthcoming decision on whether to allow China’s Huawei Technologies to take part in its 5G network, a move Washington opposes, officials said.
ANALYST RESEARCH HIGHLIGHTS
Ensign Energy Services Inc: RBC cuts rating to “sector perform” from “outperform”
Franco-Nevada: National Bank of Canada cuts price target to C$147.50 from C$150
Pretium Resources Inc: Scotiabank raises target price to C$9.75 from C$9
COMMODITIES AT 7:00 a.m. ET
Gold futures: $1662.7; -0.78%
US crude: $33.89; +8.87%
Brent crude: $37.24; +8.38%
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$1= C$1.36 Reporting by Nachiket Tekawade in Bengaluru; Editing by Shounak Dasgupta
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