Equities
Global stocks were on the rise as expectations for the U.S. Federal Reserve’s interest rate cuts grew, while investors assessed a new round of major corporate earnings.
Wall Street futures were mixed after yesterday’s rally.
TSX futures pointed higher after Canada’s main stock market was closed yesterday for a civic holiday.
In Canada, investors are getting results from Suncor Energy Inc., Dream Industrial REIT, Finning International Inc., Great-West Lifeco Inc., iA Financial Corp. Inc., Parkland Corp., Pet Valu Holdings Ltd. and SSR Mining Ltd.
On Wall Street, markets are watching earnings from Advanced Micro Devices Inc., Amgen Inc., Caterpillar Inc., Marriott International Inc., Molson Coors Beverage Co. and Pfizer Inc.
“There are signs of weakness in parts of the U.S. economy, that plays to the view that maybe not in September, but certainly this year that the Fed’s still on course to ease potentially twice,” said Rodrigo Catril, senior currency strategist at National Australia Bank.
Overseas, the pan-European STOXX 600 was up 0.52 per cent in morning trading. Britain’s FTSE 100 gained 0.4 per cent, Germany’s DAX advanced 0.91 per cent and France’s CAC 40 added 0.32 per cent.
In Asia, Japan’s Nikkei closed 0.64 per cent higher, while Hong Kong’s Hang Seng rose 0.68 per cent.
Commodities
Oil prices slid as rising OPEC+ supply and worries of weaker global demand countered concern about U.S. President Donald Trump’s threats to India over its Russian oil purchases.
The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned.
Brent crude futures were down 1.2 per cent to US$67.94 a barrel. West Texas Intermediate (WTI) crude dropped 1.3 per cent to US$65.41. Both contracts fell by more than 1 per cent yesterday to settle at their lowest in a week.
In other commodities, spot gold was down 0.5 per cent at US$3,354.56 an ounce. U.S. gold futures fell 0.5 per cent to US$3,408.20.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 72.40 US cents to 72.66 US cents in early trading. The Canadian dollar was down about 1.02 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.2 per cent to 98.98.
The euro fell 0.33 per cent to US$1.1536. The British pound edged down 0.04 per cent to US$1.3280.
In bonds, the yield on the U.S. 10-year note was last up at 4.213 per cent.
Other corporate news
Duke Energy says it will sell a 19.7-per-cent indirect stake in its Florida business to Brookfield Asset Management for US$6-billion in cash, part of a broader push to boost infrastructure investments as electricity demand soars.
Air Canada flight attendants are entering the final day of voting on whether to give a strike mandate to their union.
Economic news
China, Japan and Euro zone services and composite PI
(8:30 a.m. ET) Canada’s merchandise trade balance for June. The deficit widened to $5.9-billion as imports grew faster than exports due to a one-time high-value oil equipment import.
(8:30 a.m. ET) U.S. goods and services trade deficit for June, which narrowed in June on a sharp drop in consumer goods imports, the latest evidence of the imprint on global commerce Trump is making with sweeping tariffs on imported goods..
(9:45 a.m. ET) U.S. S&P Global Services/Composite PMI for July.
(10 a.m. ET) U.S. ISM Services PMI for July.
With Reuters and The Canadian Press