December futures on the S&P/TSX index were up 0.7% at 07:04 a.m. ET. The S&P/TSX composite index lost 2% in the past quarter, and is down 13.1% year-to-date. [.TO]
Investors' focus is on September manufacturing activity data for Canada and the United States, set to be released after markets open. Global factory output for last month mostly weakened as per a survey on Monday as persistent cost pressures and tighter policy hamper business and fuel recession fears.
Boosting futures of the resources-heavy TSX, oil prices jumped more than $3 as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, weigh biggest output cut since 2020. [O/R]
Oil is one of Canada's major exports.
Gold prices also edged 0.4% higher as the U.S. dollar softened, although gains for the yellow metal were capped by aggressive rate hike fears by the Federal Reserve. [GOL/]
The Bank of Canada (BoC) is also expected to remain on rate-hiking spree, with traders pricing in a 64.5% probability of a 50 bps hike later this month.
The Canadian central bank has already raised its overnight lending rates by 300 basis points in six months to fight inflation, which began to cool slightly in July, but is still running at levels not seen in nearly four decades.
Dow e-minis were up 156 points, or 0.54% at 07:04 a.m. ET, while S&P 500 e-minis were up 13.25 points, or 0.37% and Nasdaq 100 e-minis were up 3.5 points, or 0.03%. [.N]
On the research front, RBC upgraded the gold mining company New Gold Inc to "outperform" from "sector perform".
Mining company Agnico Eagle Mines was raised to "buy" from "neutral" by Citigroup.
RBC initiated coverage for K92 Mining Inc with a "sector perform" rating and PT of C$9.50.
FOR CANADIAN MARKETS NEWS, CLICK ON CODES:
TSX market report [.TO]
Canadian dollar and bonds report [CAD/] [CA/]
Reuters global stocks poll for Canada
Canadian markets directory
($1 = C$1.38)
(Reporting by Shashwat Chauhan in Bengaluru; editing by Uttaresh.V)
By Shashwat Chauhan