Higher commodity prices and positive cues from Asian and European markets amid rising optimism about quicker global economic recovery point to a firm start for Canadian stocks on Wednesday.
The rapid momentum in vaccination drive, encouraging data on Chinese services sector activity and hopes about additional stimulus have lifted Asian and European stocks.
Data on Canadian building permits for the month of January is due out at 8:30 AM ET.
The Canadian market ended on a firm note on Tuesday, gaining for a second straight session. The benchmark S&P/TSX Composite Index ended with a gain of 121.98 points or 0.67% at 18,421.60, after rising to 18,454.37.
Asian stocks moved higher on Wednesday as U.S. Treasury yields retreated and progress in U.S. stimulus talks underpinned optimism about the global economy. Data showing continued expansion in Chinese services sector activity contributed as well to the positive mood in Asian markets.
European stocks are up in positive territory, buoyed by optimism about economic recovery amid the rapid momentum in vaccination campaign and stimulus hopes. Strong services sector data from China is also contributing to the upside.
In commodities, West Texas Intermediate crude oil futures for April are up $0.89 or 1.5% at $60.64 a barrel.
Gold futures are sliding $10.80 or 0.6% at $1,722.80 an ounce, while Silver futures are down $0.234 or 0.87% at $26.645 an ounce.
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