Equities
Global markets steadied after yesterday’s dramatic, tech-led selloff, though traders across asset classes remained jittery.
Wall Street markets opened higher as AI-linked shares recouped some of the previous session’s sharp losses and a mixed bag of corporate earnings fuelled volatility.
The Dow Jones Industrial Average rose 0.10 per cent to 44,756.36, the S&P 500 gained 0.24 per cent to 6,026.97, and the Nasdaq Composite advanced 0.39 per cent to 19,418.219 at the bell.
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.22 per cent higher at 25,344.46, led by information technology shares.
In Canada, investors are assessing results from Metro Inc.
The Montreal-based grocer has reported a 4-per-cent increase in profits in the first quarter, and boosted the dividend paid to shareholders, as it emerges from a “transition year” and says it plans to return to growth.
On Wall Street, markets are watching earnings from Boeing Co., General Motors Co. and Starbucks Corp.
Investors and strategists continued to grapple with the fallout from yesterday’s action.
“We are on the front edge of an urgent re-evaluation of a narrative that has gripped the market for almost two years. That makes it hard to shrug off after 36 hours,” said Brent Donnelly, president of trading and analytics firm Spectra Markets.
Overseas, the pan-European STOXX 600 was up 0.72 per cent in morning trading. Britain’s FTSE 100 rose 0.68 per cent, Germany’s DAX gained 0.81 per cent and France’s CAC 40 advanced 0.55 per cent.
In Asia, Japan’s Nikkei closed 1.39 per cent lower, while Hong Kong’s Hang Seng edged 0.14 per cent higher.
Commodities
Oil prices rebounded from multi-week lows as disruption to Libyan oil loading operations offset fears of weaker demand linked to soft economic data from China and rising temperatures elsewhere.
Brent crude oil futures rose 1.2 per cent to US$77.99 a barrel. West Texas Intermediate (WTI) crude futures were up 1.3 per cent to US$74.12.
“The general tone of caution in the risk environment, coupled with weaker Chinese PMI numbers that cast further doubt on China’s oil demand outlook, may serve as a drag on oil prices,” IG analyst Yeap Jun Rong said.
In other commodities, spot gold was steady at US$2,741.64 an ounce. U.S. gold futures rose 0.3 per cent to US$2,745.30.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 69.34 US cents to 69.60 US cents in early trading. The Canadian dollar was down about 0.15 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, gained 0.57 per cent to 107.95.
The euro declined 0.6 per cent to US$1.0430. The British pound fell 0.57 per cent to US$1.2429.
In bonds, the yield on the U.S. 10-year note was last up at 4.565 per cent.
Corporate news
Canadian National Railway says it has reached a tentative four-year agreement with the International Brotherhood of Electric Workers, which had issued a 72-hour strike notice. CN said no details would be released until the agreement was ratified.
General Motors has posted fourth-quarter 2024 results and a 2025 earnings forecast ahead of Wall Street expectations as the U.S. automaker continued to see strong consumer demand for its pricey gasoline-powered trucks and SUVs.
Boeing has reported an annual loss of US$11.83-billion, its largest since 2020, as it grappled with problems at its commercial and defence units and the fallout from a crippling strike by U.S. West Coast factory workers.
Economic news
China’s markets closed (through Friday)
Japan machine tool orders
(8:30 a.m. ET) U.S. durable and core orders for December. The consensus estimates are month-over-month increases of 0.8 per cent and 0.2 per cent, respectively.
(9 a.m. ET) U.S. S&P CoreLogic Case-Shiller Home Price Index (20 city) for November. Consensus is a rise of 0.3 per cent from October and 4.3 per cent year-over-year.
(9 a.m. ET) U.S. FHFA House Price Index for November. The Street expects an increase of 0.3 per cent from October an up 4.2 per cent year-over-year.
(10 a.m. ET) U.S. Conference Board Consumer Confidence Index for January.
With Reuters and The Canadian Press