Toronto futures rise as Trudeau win lifts stimulus hopes

Futures for Canada's main stock index rebounded on Tuesday

  

Futures for Canada's main stock index rebounded on Tuesday as Prime Minister Justin Trudeau's victory in the federal election raised hopes his government would keep the stimulus taps open, while higher oil prices were set to lift energy stocks.

December futures on the S&P/TSX index were up 0.61% at 7:00 a.m. ET, recovering from a two-month low hit in the previous session.

Oil prices jumped over 1% on Tuesday after sharp losses a day earlier. 

Trudeau hung onto power on Monday, saying he had won a clear mandate to govern although he fell short of his goal for a majority win. The Liberals have pledged a substantial C$78 billion in new spending over five years. 

Data for Canada's new housing price index for August is due at 8:30 a.m. ET.

The Toronto Stock Exchange's S&P/TSX composite index ended 1.6% lower at 20,154.54 on Monday, its lowest closing level since July 22, as fears of contagion from the Evergrande crisis in China roiled global stock markets and hit commodities prices.

Dow Jones Industrial Average e-mini futures were up 0.89% at 7:00 a.m. ET, while S&P 500 e-mini futures  were up 0.82% and Nasdaq 100 e-mini futures were up 0.74%. 

TOP STORIES 

Canadian miner Teck Resources Ltd, cut its forecast for annual refined zinc production on Tuesday, citing an impact on its operations from wildfires in British Columbia.

Canadian Prime Minister Justin Trudeau on Tuesday acknowledged he will need to work with other parties after he fell short of winning a majority in parliamentary elections, leaving him once more dependent on opposition legislators to govern.

(Reporting by Amal S in Bengaluru; Editing by Sriraj Kalluvila) ((Amal.S@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 3677;))


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