Equities
Global markets edged lower in cautious trading as investors took in economic data that could signal future moves on interest rates.
Wall Street’s main indexes opened subdued, as investors digested softer-than-expected jobs data and took stock of a report that said president-elect Donald Trump was considering a national economic emergency declaration to allow a series of tariffs.
The Dow Jones Industrial Average rose 0.03 per cent to 42,542.1, the S&P 500 gained 0.03 per cent to 5,910.66, and the Nasdaq Composite dropped 0.10 per cent to 19,469.365 at the bell.
The Toronto Stock Exchange’s S&P/TSX composite index followed sentiment 0.05 per cent lower to 25,917.75.
“The data supports our view the U.S. economy should achieve a soft landing this year to the benefit of risk assets while limiting the Federal Reserve to only 1-2 more rate cuts,” said Mansoor Mohi-uddin, chief economist at Bank of Singapore.
Overseas, the pan-European STOXX 600 was down 0.5 per cent in morning trading. Britain’s FTSE 100 gave back 0.56 per cent, Germany’s DAX fell 0.24 per cent and France’s CAC 40 slid 1.02 per cent.
In Asia, Japan’s Nikkei closed 0.26 per cent lower, while Hong Kong’s Hang Seng fell 0.86 per cent.
Commodities
Oil prices trimmed earlier gains as the U.S. dollar strengthened but continued to find support from a tightening of supplies from Russia and other OPEC members and a drop in U.S. crude stocks.
Brent crude futures were up 0.27 per cent at US$77.26 a barrel. West Texas Intermediate (WTI) crude futures climbed 0.36 per cent to US$74.52.
A stronger U.S. dollar makes oil more expensive for holders of other currencies.
“The drop (in oil prices) seems to be driven by a general shift in risk sentiment with European equity markets falling and the USD getting stronger,” said UBS analyst Giovanni Staunovo.
In other commodities, spot gold rose was little changed at US$2,646.88 an ounce. U.S. gold futures were down 0.2 per cent to US$2,660.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 69.39 US cents to 69.74 US cents in early trading. The Canadian dollar was down about 1.4 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.51 per cent to 109.10.
The euro retreated 0.46 per cent to US$1.0294. The British pound dropped 1.2 per cent to US$1.2328.
In bonds, the yield on the U.S. 10-year note was last up at 4.719 per cent.
Economic news
China aggregate yuan financing and new yuan loans
Japan consumer confidence
Euro zone consumer and economic confidence
Germany factory orders and retail sales
(8:15 a.m. ET) U.S. ADP National Employment Report for December, showed the U.S. economy added 122,000 jobs in the private sector, compared with economists’ estimate of a rise of 140,000.
(8:30 a.m. ET) U.S. initial jobless claims for week of Jan. 4, which unexpectedly fell 10,000 to a seasonally adjusted 201,000, pointing to a stable labour market though some laid-off workers are experiencing difficulties finding new jobs. Estimates were 225,000, up 14,000 from the previous week.
(2 p.m. ET) U.S. Fed minutes for Dec. 17-18 meeting are released.
(3 p.m. ET) U.S. consumer credit for November.
With Reuters and The Canadian Press