(Adds details; updates prices)
July 10 (Reuters) - Futures in Canada’s main stock index reversed course to trade higher on Wednesday as hopes of an interest rate cut rose after U.S. Federal Reserve Chairman Jerome Powell said the central bank would “act as appropriate” to sustain a decade-long expansion.
Meanwhile, Bank of Canada is scheduled to release its rate decision at 10:00 am ET. The central bank is expected to keep rates steady at 1.75%, according to a Reuters poll of economists.
Investors will also closely watch Fed Chairman Powell’s testimony before the U.S. House of Representatives Financial Services Committee at 10:00 a.m. ET. Later in the day, the Fed is due to release the minutes from its last policy meeting, in which officials edged toward a rate cut.
September futures on the S&P/TSX index were up 0.26% at 8:47 a.m. ET.
The Toronto Stock Exchange’s S&P/TSX rose 82.26 points, or 0.50 percent, to 16,545.21 on Tuesday.
Dow Jones Industrial Average e-mini futures were up 0.43% at 8:47 a.m. ET, while S&P 500 e-mini futures were up 0.45% and Nasdaq 100 e-mini futures were up 0.78%.
Convenience store operator Alimentation Couche-Tard Inc missed analysts’ estimates for quarterly profit on Tuesday due to lower fuel sales across North America and Europe as well as higher expenses.
Canada’s Bombardier Inc is laying off half of the 1,100 workers at its Thunder Bay, Ontario, railway car plant, BNN Bloomberg reported on Tuesday, citing a federal government source.
ANALYST RESEARCH HIGHLIGHTS
Centerra Gold Inc: Credit Suisse raises target price to C$10 from C$8
Premium Brands Holdings Corp: Desjardins raises rating to buy from hold
Transalta Renewables: National Bank of Canada raises target price to C$13.25 from C$13
COMMODITIES AT 8:47 a.m. ET
Gold futures: $1,412.7; +0.87%
US crude: $59.14; +2.27%
Brent crude: $65.7; +2.4%
U.S. ECONOMIC DATA DUE ON WEDNESDAY
1000 Wholesale inventory, R mm for May: Expected 0.4%; Prior 0.4%
1000 Wholesale sales mm for May: Expected 0.0%; Prior -0.4%
1100 TR IPSOS PCSI for Jul: Prior 62.83
FOR CANADIAN MARKETS NEWS, CLICK ON CODES:
TSX market report
Canadian dollar and bonds report
Reuters global stocks poll for Canada
Canadian markets directory
$1= C$1.31 Reporting by Nachiket Tekawade in Bengaluru; Editing by Arun Koyyur