Equities
Global markets slipped as U.S.-China trade tensions bubbled and investors turned defensive ahead of U.S. jobs data and a widely expected cut in European interest rates.
Wall Street futures were in the red after the S&P 500 on Friday closed out its best month since November, 2023.
TSX futures pointed higher as commodity prices climbed.
On Wall Street, markets are watching earnings from Campbell’s Co.
“Trade tensions are heating up again. Not only does [U.S. President] Donald Trump seem unfazed by growing questions around the legitimacy of his tariffs, but he also accused China of violating the trade truce they signed in Geneva earlier this month,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, wrote in a note.
“The renewed tariffs on steel and aluminum will likely throw some cold water on negotiations between the EU and the US.”
Overseas, the pan-European STOXX 600 was down 0.23 per cent in morning trading. Britain’s FTSE 100 inched up 0.06 per cent, Germany’s DAX declined 0.3 per cent and France’s CAC 40 gave back 0.46 per cent.
In Asia, Japan’s Nikkei closed 1.3 per cent lower, while Hong Kong’s Hang Seng slid 0.57 per cent.
Commodities
Oil prices rebounded after producer group OPEC+ decided to increase output in July by the same amount as it did in each of the prior two months.
Brent crude futures climbed 3.97 per cent to US$65.27 a barrel. West Texas Intermediate (WTI) crude was at US$63.49 a barrel, up 4.44 per cent.
OPEC+ had been expected to discuss a bigger production hike.
“Had they gone through with a surprise larger amount, then Monday’s price open would have been pretty ugly indeed,” analyst Harry Tchilinguirian of Onyx Capital Group wrote on LinkedIn.
In other commodities, spot gold was up 2 per cent at US$3,353.29 an ounce. U.S. gold futures rose 1.9 per cent to $3,378.40.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 72.74 US cents to 73.13 US cents in early trading. The Canadian dollar was up about 0.84 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.53 per cent to 98.80, having lost about 9 per cent in value so far this year.
The euro gained 0.56 per cent to US$1.1412. The British pound advanced 0.59 per cent to US$1.3533.
In bonds, the yield on the U.S. 10-year note was last up at 4.430 per cent.
Other corporate news
Campbell’s Co beat estimates for third-quarter sales and profit, helped by strong demand for its popular canned food and soups such as Chunky soups and Pace salsa as consumers prefer to eat at home amid an uncertain economy.
Economic news
China PMI
Japan and Euro zone manufacturing PMI. European manufacturing took another step toward stabilization in May but Asian factory activity shrank as soft demand in China and U.S. tariffs took a heavy toll, surveys showed, highlighting the darkening outlook for the once fast-growing region.
(9:30 a.m. ET) Canada’s S&P global manufacturing PMI for May.
(9:45 a.m. ET) U.S. S&P global manufacturing PMI for May.
(10 a.m. ET) U.S. ISM manufacturing PMI for May.
(10 a.m. ET) U.S. construction spending for April.
(1 p.m. ET) U.S. Fed chair Jerome Powell gives opening remarks at International Finance Divisions conference.
Also: U.S. and Canadian auto sales for May
With Reuters and The Canadian Press