Equities
Global stocks rose as a flurry of new policies from U.S. President Donald Trump combined with robust corporate earnings to bolster investor optimism.
Wall Street’s main indexes opened higher, with the benchmark S&P 500 just shy of a record high, as investors cheered streaming giant Netflix’s strong quarterly performance and Trump’s multibillion-dollar support to bolster AI infrastructure.
The Dow Jones Industrial Average rose 0.35 per cent to 44,178.06, the S&P 500 gained 0.53 per cent to 6,081.39, and the Nasdaq Composite advanced 0.74 per cent to 19,903.046.
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.24 per cent higher at 25,341.63, helped by materials share.
In Canada, investors are getting results from AGF Management Ltd.
On Wall Street, markets are watching earnings from Johnson & Johnson, Procter & Gamble Co., Abbott Laboratories, Halliburton Co., Kinder Morgan Inc. and Progressive Corp.
There was some relief as many investors and foreign capitals had expected tariffs to be among a raft of executive orders Trump signed in his first day in office.
“Trump seems more focused at home and Europe’s got a stay of execution,” said Eddie Kennedy, head of bespoke discretionary fund management at Marlborough.
“I think it makes sense to have a little rally.”
Overseas, the pan-European STOXX 600 was up 0.67 per cent in morning trading. Britain’s FTSE 100 rose 0.15 per cent, Germany’s DAX gained 1.3 per cent and France’s CAC 40 advanced 0.96 per cent.
In Asia, Japan’s Nikkei closed 1.58 per cent higher, while Hong Kong’s Hang Seng slid 1.63 per cent.
Commodities
Oil prices held stead, with traders closely watching President Donald Trump’s proposed tariffs and the potential impact of the national energy emergency he declared on his first day in office.
Brent crude futures rose 0.05 per cent to US$79.33 a barrel. West Texas Intermediate (WTI) crude futures eased 0.03 per cent to US$75.81.
“As more details emerge regarding energy production and trade agreements, traders will assess the balance between economic growth, energy security, and policy risks,” said Dilin Wu, research strategist at Pepperstone.
In other commodities, spot gold added 0.6 per cent to trade at US$2,759.83 an ounce after hitting its highest since Nov. 1 earlier in the session. U.S. gold futures gained 0.4 per cent to US$2,771.10.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 69.58 US cents to 69.93 US cents in early trading. The Canadian dollar was up about 0.2 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, slipped 0.02 per cent to 108.04.
The euro was flat at US$1.0430. The British pound slid 0.08 at US$1.2345.
In bonds, the yield on the U.S. 10-year note was last down at 4.571 per cent.
Corporate news
Online retailer Amazon Canada says it is closing its operations in Quebec over the next two months, laying off 1,700 permanent employees and 250 temporary workers.
Johnson & Johnson, fresh off a US$14.6-billion deal to buy neurological drugmaker Intra-Cellular, has reported fourth-quarter sales and profit above Wall Street estimates, driven by strong sales of its cancer treatments.
Procter & Gamble beat second-quarter sales estimates, as the Pantene shampoo maker’s efforts to bring newer versions of its products to the market across various price tiers attracted more customers.
Restaurant franchiser and operator MTY Food Group is raising its quarterly dividend by 18 per cent to 33 cents a share.
Halliburton beat analysts’ estimates for fourth-quarter profit on Wednesday, helped by higher demand for oilfield services and equipment from international markets.
Economic news
(8:30 a.m. ET) Canada’s industrial product and raw materials price indexes for December. Estimates are month-over-month increases of 0.7 per cent and 0.5 per cent, respectively.
(10 a.m. ET) U.S. leading indicator for December.
(10:15 a.m. ET) ECB President Christine Lagarde participates in a panel on “Unlocking Europe’s Potential” in Davos.
With Reuters and The Canadian Press