Equities
Global markets were unnerved as traders wrestled with a steep selloff and a surge in volatility to the highest levels in months.
Wall Street futures were mixed after the S&P 500 and the Nasdaq yesterday suffered their biggest one-day percentage drop since Oct. 10.
TSX futures were in positive territory after Canada’s main stock market closed lower yesterday.
In Canada, investors are getting results from Brookfield Renewable Partners LP, Cameco Corp., GFL Environmental Inc., Maple Leaf Foods Inc., Nutrien Ltd., Sun Life Financial Inc., Great-West Lifeco Inc., Choice Properties REIT and Kinaxis Inc.
On Wall Street, markets are watching earnings from Novo Nordisk ADR, McDonald’s Corp., Qualcomm Inc., Applovin Corp., MetLife Inc., DoorDash Inc. and Open Text Corp.
“At some point, profits need to be booked. Especially when we’ve seen repeatedly solid runs to record highs,” said Matt Simpson, senior market analyst at StoneX in Brisbane. “Those with money on the line aren’t likely seeking answers right now - they’re just copying each other like kids in an exam. And the answer is to run.”
Overseas, the pan-European STOXX 600 was down 0.09 per cent in morning trading. Britain’s FTSE 100 gained 0.26 per cent, Germany’s DAX fell 0.17 per cent and France’s CAC 40 retreated 0.03 per cent.
In Asia, Japan’s Nikkei closed 2.5 per cent lower, while Hong Kong’s Hang Seng gave back 0.06 per cent.
Commodities
Oil prices were steady as investors digested weaker economic data from top oil importers while U.S. inventory data provided some support.
Brent crude futures were down 0.34 per cent to US$64.22 a barrel, while West Texas Intermediate (WTI) crude declined 0.46 per cent to US$60.28.
Weaker economic data coupled with a rally in the U.S. dollar kept oil from making significant gains, while prices found support from refined products amid lower U.S. stocks, PVM analyst Tamas Varga said.
In other commodities, spot gold was up 0.8 per cent at US$3,963.03 an ounce. U.S. gold futures for December delivery rose 0.3 per cent to US$3,971.90 an ounce. Gold prices have gained about 52 per cent this year, reaching an all-time peak of US$4,381.21 on Oct. 20.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 70.72 US cents to 70.94 US cents in early trading. The Canadian dollar was down about 1.32 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, was little changed at 100.25.
The euro slipped 0.04 per cent to US$1.1478. The British pound advanced 0.05 per cent to US$1.3028.
In bonds, the yield on the U.S. 10-year note was last up at 4.116 per cent.
Economic news
*Note: Scheduled U.S. data reports may not be released if the government shutdown isn’t resolved.
China and euro area services PMIs
Germany releases factory orders and France industrial production
8:15 am ET: U.S. ADP national employment report for October
9:30 am ET: S&P global services PMI
10 am ET: U.S. S&P global services/composite PMI
4:30 pm ET: Bank of Canada governor Tiff Macklem and senior deputy governor Carolyn Rogers testify before the House standing committee on finance
With Reuters and The Canadian Press