Equities
Global stocks took a breather following their weeks-long recovery run while investors awaited key economic data, trade developments and remarks from U.S. Federal Reserve chairman Jerome Powell.
Wall Street futures were in negative territory as markets assessed U.S. retail sales figures and earnings from Walmart for a check on the pulse of consumer sentiment.
TSX futures followed sentiment lower after Canada’s main stock index climbed to a three-month high yesterday.
In Canada, investors are getting results from South Bow Corp. and InterRent REIT.
On Wall Street, markets are watching earnings from Walmart Inc., Alibaba Group Holding ADR, Deere & Co.
“We’ve had a huge party, everyone’s hung over, and now we’re just recuperating and waiting for the next big party,” said Tony Sycamore, a market analyst at IG.
Overseas, the pan-European STOXX 600 was little changed in morning trading. Britain’s FTSE 100 rose 0.3 per cent, Germany’s DAX slipped 0.03 per cent and France’s CAC 40 gave back 0.18 per cent.
In Asia, Japan’s Nikkei closed down just shy of 1 per cent, while Hong Kong’s Hang Seng slid 0.79 per cent.
Commodities
Oil prices fell on expectations for a U.S.-Iran nuclear deal that could result in sanctions easing, while a surprise build in U.S. crude oil inventories last week heightened investor concerns about oversupply.
Brent crude futures were down 3 per cent to US$64.11 a barrel. West Texas Intermediate (WTI) crude futures dropped 3.2 per cent to US$61.15.
“(Any) immediate sanctions relief stemming from a nuclear agreement could unlock an additional 0.8 million barrels per day of Iranian crude for the global market – an undeniably bearish development for prices,” SEB analyst Ole Hvalbye said.
In other commodities, spot gold was little changed at US$3,179.07 after hitting its lowest since April 10 earlier in the session. U.S. gold futures slid 0.3 per cent to US$3,179.20.
Currencies and bonds
The Canadian dollar was little changed against its U.S. counterpart.
The day range on the loonie was 71.47 US cents to 71.63 US cents in early trading. The Canadian dollar was down about 1.09 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, declined 0.2 per cent to 100.84.
The euro rose 0.13 per cent to US$1.1188. The British pound advanced 0.12 per cent to US$1.3277.
In bonds, the yield on the U.S. 10-year note was last down at 4.518 per cent ahead of the North American opening bell.
Corporate news
Walmart’s U.S. comparable sales surpassed expectations in the first quarter, but the retailing giant known for affordable goods said the high costs of tariffs may mean it cannot keep from passing on higher prices to shoppers in the near-future.
Alibaba has reported quarterly revenue that missed Wall Street estimates, as the Chinese e-commerce giant works on new strategies to keep consumers spending amid persistent economic weakness and global trade uncertainties.
Deere & Co. has cut the lower end of its annual profit forecast over softer demand for its tractors from farmers opting to rent machines instead.
UnitedHealth Group shares fell nearly 7 per cent in premarket trading after the Wall Street Journal reported that the U.S. Department of Justice was investigating the company for potential Medicare fraud.
Economic news
Euro area and Britain releases first quarter GDP data and March industrial production.
Britain’s economy grew more strongly than expected at 0.7 per cent, up sharply from an increase of 0.1 per cent in the last quarter of 2024, official data showed.
8:15 am ET: Canadian housing starts for April, which rose 30 per cent compared with the previous month to an annualized 278,606 units, a far bigger increase than was expected, CMHC data showed. BMO had forecast a 5-per-cent increase to an annualized rate of 225,000.
8:30 am ET: Canadian manufacturing sales and new orders for March. BMO forecasts a decline of 1.9 per cent and 2.5 per cent, respectively
8:30 am ET: Canadian wholesale trade for March. A decline of 0.3 per cent is forecast
8:30 am ET: Initial U.S. weekly jobless claims
8:30 am ET: U.S. retail sales for April, which showed slowing growth as the boost from households front-loading motor vehicle purchases ahead of tariffs faded and households pulled back on other spending against the backdrop of an uncertain economic outlook.
8:30 am ET: U.S. PPI final demand for April, which dropped unexpectedly for the first time in more than a year. The PPI fell 0.5 per cent from March and rose 2.4 per cent from April, 2024. A rise of 2.6 per cent was expected from a year earlier.
8:40 am ET: U.S. Fed Chair Jerome Powell speaks on “framework review” in Washington, DC
9 am ET: Canadian existing home sales for April. A decline of 11.5 per cent is expected from a year earlier, with average selling prices down 4 per cent. The MLS home price index is also expected, with a 3 per cent year over year drop forecast
9:15 am ET: U.S. industrial production for April
10 am ET: NAHB housing market index and U.S. business inventories
Ontario budget released
With Reuters and The Canadian Press