BEFORE THE BELL: Investors await BoC announcement; Trade optimism still holding firm in global markets
Investors are betting on a positive outcome in trade negotiations between the US and China. A recent round of talks has ended, with details expected to be released soon, but the movement towards easing tariff tension between the two countries is continuing to boost markets this week.
In overnight trading, the Nikkei gained 1.1 per cent to close at 20,427.
The positivity is also continuing to push crude prices, with US oil up to 50.89 a barrel.
In Canada, investors will be watching carefully as Bank of Canada Governor Stephen Poloz announces his decision on the interest rate this morning. However, as Poloz isn’t expected to move the rate, the bigger focus will be on his forecast for Canada’s economy in the coming months.
Ahead of that announcement, coming just after the open on Bay Street, the Loonie is pushing to 75.55 cents US.
One of Canada’s biggest cannabis companies is coming up short on expectations. Aurora Cannabis released its second quarter economic forecast, which is well below post-legalization expectations for the company, with experts blaming a dry up in supply on slowing sales. Aurora’s stock fell 4.4 per cent before the close following the news.