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Highlights
- Futures tracking the main index in Canada rose on Tuesday, October 19, as prices of gold and oil continued increasing.
- The Organization for Economic Co-operation and Development (OECD) has said that the economy faces bigger challenges than the COVID-19 pandemic.
- The Canadian National Railway Company (TSX:CNR) will release the financial results for the third quarter of fiscal 2021 after the market close on Tuesday, October 19.
The December futures on the S&P/TSX Index jumped 0.4 per cent at 7 AM EST as prospects of strong financial results for the third quarter of this year could have impacted the investor sentiment positively.
Futures tracking the main index in Canada rose on Tuesday, October 19, as prices of gold and oil continued increasing. A crunch in the supply of coal, electricity and natural gas is causing oil prices to go up. Meanwhile, gold prices have surged against a weaker US dollar.
Before the market opens, let us look at a few developments that could influence the decision of investors:
‘Economy faces bigger challenges than the COVID-19 pandemic’
The Organization for Economic Co-operation and Development (OECD) has said that demographic change, slowing productivity gains and deceleration of large emerging economies could reduce the economic growth among OECD's members to 1.5 per cent in 2060 from about three per cent currently. Notably, the OECD comprises 38 members and the G20 nations.
The latest comment by the OECD suggests that the COVID-19 pandemic has affected the economy, however, there are bigger issues at hand. Apart from the reduction in economic growth, countries could also face the issue of rising costs, particularly from healthcare and pensions.
It would be interesting to observe how the market responds to the comments made by the OECD.
Canadian National Railway Company to announce Q3 results
The Canadian National Railway Company (TSX:CNR) will release the financial results for the third quarter of fiscal 2021 after the market close on Tuesday, October 19. With a 19,500-mile rail network, the Canadian National Railway Company is a transportation leader and is essential to the economy.
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CN transports over 300 million tons of natural resources, finished goods and manufactured products across North America every year. The railway company posted strong financial results for the second quarter of this year and achieved an operating income of C$ 1,382 million, representing a year-over-year (YoY) increase of 76 per cent.
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The CNR stock would be worth watching for as the speculation for financial results could influence investors.
Fresh twist in Rogers Communications' 'family feud'
As Edward Rogers reportedly fights an internal battle with family members, he has said that there's a scope for improvement in the performance of Rogers Communications Inc.
The feud began when Edward Rogers, the chairman of Rogers Communications faced resistance from his family members after they blocked his move of removing nine of 11 senior executives from the company.
Also Read: 3 Canadian midcap stocks to buy this fall
The plan to remove CEO Joe Natale and senior executives failed to succeed last month as it was shot down by other family members like Marth Rogers and Melinda Rogers-Hixon.
The family is reportedly trying to resolve the dispute at a meeting scheduled for October 21.
Bottom line
Keeping a track of market events help investors predict market sentiments and make decisions accordingly.
