U.S. equity index futures are higher again this morning. S&P 500 futures are up 6 points in pre-opening trade. Moves by the S&P 500 Index, Dow Jones Industrial Average and NASDAQ Composite Index yesterday above their 50 day moving average has triggered technical buying.
The Bank of Canada kept its Overnight Lending Rate to major Canadian banks at 0.25% and is expecting to maintain this rate until June. The Bank of Canada’s comment implied preparation for a less accommodative monetary policy later this year. The Canadian Dollar moved up to 96.90 cents on the news.
The Reserve Bank of Australia continues to rein in inflation pressures and excessive economic growth. Last night it raised its Policy Rate from 3.75% to 4.00%. This is the fourth increase in the Policy Rate since last fall.
Bank of Montreal reported higher than expected fiscal first quarter earnings. Consensus for cash earnings was $1.03 per share. Actual was $1.13 per share.
Analysts are taking a more bullish stance on the Canadian energy sector. This morning Deutsche Bank raised its target price on Suncor from $20 to $28 and increased its target price on Canadian Natural Resources from $78 to $80. ‘Tis the season for the sector to move higher!
Technicals on the U.S. energy sector also are improving. See a technical and seasonality comment on Hess by EquityClock.com
CF Industries re-entered the battle to take over Terra Industries. CF Industries has offered to purchase Terra for a cash and stock deal worth $47.40, topping a competing offer at $41.10 per share. Terra quickly rose in overnight trading to near $47.
Don Vialoux, chartered market technician, is the author of a free
daily report on equity markets, sectors, commodities, equities and
Exchange-Traded Funds. For more visit Don Vialoux's Web site