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Highlights
- Futures following Canada's benchmark index shot up by 0.7 per cent (7AM EST) on Thursday, October 7.
- The improvement came amid reports of the US extending the debt ceiling deadline.
- On Wednesday, the S&P/TSX composite index had closed higher.
Futures following Canada's benchmark index shot up by 0.7 per cent (7AM EST) on Thursday, October 7, amid reports of the US extending the debt ceiling deadline.
On Wednesday, the S&P/TSX composite index had recovered from early losses and closed 8.23 points, 0.04 per cent, higher at 20,191.66.
Let’s check out some developing events that can impact Canada’s financial markets today, on October 7.
Enbridge Inc (TSX:ENB) stocks climb after Line 3 starts up
Earlier in October, Enbridge Inc finally started up its long-awaited Line 3 crude pipeline, which stretches all the way from Edmonton, Alberta, to Superior, Wisconsin in the US.
Also read: Is Enbridge (TSX:ENB) a great dividend buy after Line 3 permit?
The new oil network is said to be equipped to carry about 760,000 barrels of oil per day, which is nearly twice the size of the pipeline it is replacing.
Stocks of the Canadian energy player, which closed about a per cent higher on Wednesday, has climbed by about 32 per cent in the past one year. The latest development could see the stock price inch higher.
Image description: Enbridge Inc (TSX:ENB) Q2 FY21 results
Canada’s oil export to the US rises
Canada, known to be one of the top energy producers worldwide, saw its weekly oil deliveries to the US increase to 4.04 million barrels a day in October, as per a report published by the Energy Information Administration (EIA) on Wednesday.
This is said to be the highest volume of the export this year, and could have been partly driven by the start of Enbridge’s Line 3 crude pipeline.
While some market experts believe that the new pipeline can boost Canada’s oil export volume south of the future in the future, the energy supply crunch that the US is faced with at the moment can also fuel this demand further.
This demand for oil supplies can influence Canadian energy stocks too.
Richelieu Hardware Ltd (TSX:RCH) to Release Q3 financial results
Specialty hardware maker Richelieu Hardware Ltd is set to release its earnings report for the third quarter of fiscal 2021 on Thursday morning.
Richelieu is known to import and manufacture specialty hardware products for various furnishing purposed and hold over 90,000 active customers.
In the second quarter ending May 31, 2021, Richelieu noted a 49.6 per cent year-over-year (YoY) jump in its total sales of C$ 371.4 million.
Velan Inc (TSX:VLN) to Release Q2 financial results
Industrials company Velan Inc is also scheduled to release on Thursday its financials for the second quarter ending August 31, 2021.
Velan, which manufactures industrial valves, had recorded sales of US$ 74.5 million in the first quarter ending May 31, 2021, noting a decline of 2.8 per cent YoY.
Also read: Can Evergrande’s great fall in China impact Canadian stock markets?
Industrial product and raw materials data
Statistics Canada released its third and final report on the country’s residential real estate sales data for the year of 2018 on Thursday.
It also published the latest retail commodity sales figures on Thursday, which showed that retail sales grew 5.2 per cent YoY to C$ 60 billion in July 2021.
Bottom line
The US’ decision on extending the debt ceiling deadline is likely to impact the Canadian markets further, so that would be something to watch out today.
