Equities
Global markets were mixed as trading resumed following the New Year’s Day holiday and investors cautiously eyed the return of U.S. president-elect Donald Trump to the White House.
Wall Street’s main indexes opened higher on hopes that a fresh political landscape and more interest rate cuts will enhance corporate and economic performance.
The Dow Jones Industrial Average rose 0.27 per cent to 42,660.09, the S&P 500 gained 0.37 per cent to 5,903.26, and the Nasdaq Composite advanced 0.48 per cent to 19,403.9 at the bell.
The Toronto Stock Exchange’s S&P/TSX Composite index climbed 0.8 per cent to 24,935.81, as higher oil and gold prices propped up energy and mining sectors.
“I think we’re now in a bit of a twilight zone between now and Jan. 20,” said IG market analyst Tony Sycamore, referring to Trump’s inauguration date.
“It’s very unusual for stocks not to get a positive December ... and that worries me a little bit, because when markets don’t go up at times like this when they should be going up, it generally means that there are other concerns,” said Sycamore.
“There’s a pretty common consensus out there that Trump’s going to run the economy red hot.”
Overseas, the pan-European STOXX 600 was up 0.11 per cent in morning trading. Britain’s FTSE 100 gained 0.83 per cent, Germany’s DAX rose 0.13 per cent and France’s CAC 40 declined 0.58 per cent.
In Asia, Japan’s Nikkei closed 0.96 per cent lower, while Hong Kong’s Hang Seng fell 2.18 per cent.
Commodities
Oil prices rose with investors taking an optimistic view on China’s economy and fuel demand after a pledge by President Xi Jinping to promote growth.
Brent crude futures rose 1.6 per cent to $75.81 a barrel. West Texas Intermediate (WTI) crude futures gained 1.7 per cent to US$72.92 a barrel.
Weaker Chinese economic data is seen by some analysts as positive for oil prices because it could prompt Beijing to accelerate its stimulus program.
In other commodities, spot gold rose 0.7 per cent to US$2,641.94 an ounce, having gained 0.7 per cent on the last trading day of 2024. U.S. gold futures gained 0.5 per cent to US$2,654.90.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 69.30 US cents to 69.60 US cents in early trading. The Canadian dollar was down about 2.75 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, advanced 0.36 per cent to 108.87.
The euro slid 0.38 per cent to US$1.0321. The British pound dropped 0.86 per cent to US$1.2409.
In bonds, the yield on the U.S. 10-year note was last down at 4.549 per cent.
Corporate news
Tesla’s annual deliveries fell for the first time in 2024 despite the electric automaker handing over a record number of units in the fourth quarter, indicating tepid demand for its aging line-up of models.
Economic news
Euro zone’s manufacturing PMI, which dipped to 45.1 in December, just under a preliminary estimate and further below the 50 mark separating growth from contraction.
Germany’s retail sales
(8:30 a.m. ET) U.S. initial jobless claims for the week ended Dec. 28, which came in lower than expected at 211,000 compared with the 222,000 estimate.
(9:30 a.m. ET) Canada’s S&P Global Manufacturing PMI for December, which showed manufacturing activity increased at the fastest pace in almost two years.
(9:45 a.m. ET) U.S. S&P Global Manufacturing PMI for December.
(10 a.m. ET) U.S. construction spending for November. The Street is projecting a rise of 0.1 per cent from October.
Also: Canadian and U.S. auto sales for December.
With Reuters and The Canadian Press