Futures for Canada’s main stock index rose on Tuesday, tracking their U.S. peers, on rising optimism around the corporate earnings season and the reversal of U.K.’s fiscal policy.
The TSX Composite leaped 294.67 points, or 1.6%, to close Monday at 18,613.63.
December futures jumped 0.9% on Tuesday.
The Canadian dollar dipped 0.14 cents to 72.78 cents U.S.
On the research front, RBC cut forest product companies Western Forest Products and Resolute Forest Products to sector perform from outperform.
In the economic docket, Statistics Canada said foreign investment in Canadian securities growth accelerated in August and reached $22 billion, the largest investment since April.
Meanwhile, Canadian investors reduced their holdings of foreign securities by $1.4 billion, after buying $4.3 billion in July.
Also, Canada Mortgage and Housing Corporation reported 271,068 housing starts in September, a drop from 284,757 starts recorded in August.
The TSX Venture Exchange marched higher 5.54 points, or 1%, Monday to 586.63.
Stock futures rose Tuesday morning after the NASDAQ Composite posted its best daily performance since July.
Futures the Dow Jones Industrials climbed 492 points, or 1.6%, to 30,722.
Futures for the S&P 500 rocketed 69.25 points, or 1.9%, to 3,758.50.
Futures for the tech-heavy NASDAQ Composite popped 237.75 points, or 2.2%, to 11,348.
Strong earnings results on Tuesday morning were adding fuel to a rally that began on Monday. Shares of Johnson & Johnson rose 1.7% in premarket trading after it beat estimates on the top and bottom lines for the third quarter. Goldman Sachs rose more than 2% after strong trading results helped the investment bank beat expectations for earnings and revenue.
Those reports continued a strong stretch of earnings, including beats from Bank of America and Bank of New York Mellon on Monday.
The Dow is coming off a strong start to the week, adding roughly 551 points on Monday. The S&P 500 also rose 2.65% for the day.
The NASDAQ surged 3.43% as tech stocks rebounded, led by names such as Amazon, Meta Platforms and Microsoft. It was the best day for the tech-heavy index since July 27.
Fears of a recession and overly aggressive central banks have helped push the U.S. markets to their lows of the year in recent weeks, but the solid start to earnings season may signal that the economy is currently in better shape than feared.
In Japan, the Nikkei 225 gained 1.4% Tuesday, while in Hong Kong, the Hang Seng Index increased 1.8%.
Oil prices eked up four cents to $85.50 U.S. a barrel.
Gold prices slid $5.10 to $1,659 U.S. an ounce.