Aphria-Tilray Merger in Focus
Futures for Canada’s main stock index rose on Wednesday, helped by gains in gold prices, while investors awaited inflation data due later in the day.
The TSX ended Tuesday up 119.08 points to 17,506.48.
The Canadian dollar faded 0.3 cents to 78.44 cents U.S.
December futures hiked 0.7% Wednesday.
Aphria and rival Tilray Inc have agreed to combine their operations, Bloomberg News reported on Wednesday.
ATB Capital Markets initiates coverage on Empire Company with an outperform rating and price target of $44
CIBC starts coverage on Hudbay Minerals with an outperform rating and a price target $10.75
CIBC raises the rating on Yangarra Resources to neutral from underperform.
On the economic slate, Statistics Canada reported November’s consumer price index rose 1.0% on a year-over-year basis in November, up from a 0.7% increase in October. On a seasonally adjusted monthly basis, the CPI rose 0.3% in November, matching the increase in October.
Also, the agency non-residents added $6.9 billion of Canadian securities to their portfolios in October, with the bulk of the investment in government bonds. Meanwhile, Canadian investors acquired $8.0 billion of foreign securities, largely foreign government bonds.
Elsewhere, wholesale sales jumped 1.0% in October to $66.7 billion. It was the sixth consecutive increase for the sector.
Finally, the Canadian Real Estate Association said MLS sales edged back by 1.6% in November. Small declines in October and November notwithstanding, monthly activity is still running well above most of history.
ON BAYSTREET
The TSX Venture Exchange gained 8.77 points, or 1.1%, to 791.24.
ON WALLSTREET
U.S. stock futures rose slightly Wednesday as lawmakers appeared to make progress on a fiscal stimulus.
Futures for the Dow Jones Industrials gained 69 points, or 0.2%, at 30,183.
Futures for the S&P 500 advanced 9.25 points, or 0.3%, at 3,696.25.
Futures for the NASDAQ Composite jumped 21.75 points, or 0.2%, to 12,617.75.
House Speaker Nancy Pelosi, Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer and House Minority Leader Kevin McCarthy met Tuesday to strike a bipartisan aid deal. Treasury Secretary Steven Mnuchin called into the talks.
Schumer said the leaders are “making progress, and hopefully we can come to an agreement soon.
The deadline on stimulus looms amid some of the darkest days of the pandemic. The U.S. is recording at least 215,400 new COVID-19 cases and at least 2,300 virus-related deaths each day, based on a seven-day average using Johns Hopkins University data.
The Pfizer COVID-19 vaccine rollout continued across the U.S. Tuesday.
The Federal Reserve will release its statement with projections on the stance of monetary policy on Wednesday afternoon. While the Fed’s long term view is expected to be improved due to the vaccine, the central bank is expected to sound very dovish at the end of its meeting.
Overseas, in Japan, the Nikkei 225 regained 0.3% Wednesday, while in Hong Kong, the Hang Seng index hiked 1%.
Oil prices eked up four cents to $47.66 U.S. a barrel.
Gold prices brightened $7.10 at $1,862.40 U.S.