Equities
Global markets searched for direction after better-than-expected U.S. economic data drew investors back into markets yesterday in the wake of a steep selloff that started the week.
Wall Street futures pointed lower after major North American markets rebounded yesterday to close higher, while TSX futures were in positive territory.
Dow futures were down 0.04 per cent, S&P 500 futures slipped 0.01 per cent and Nasdaq futures were 0.04 per cent lower as of 9:10 a.m. ET.
In Canada, investors are getting results from BCE Inc., Canadian Tire Corp. Ltd., Bombardier Inc., Brookfield Business Partners LP, Fairfax Financial Holdings Ltd., TC Energy Corp., Pembina Pipeline Corp., Canadian Natural Resources Ltd., TransAlta Corp., Quebecor Inc., Saputo Inc. and RioCan REIT.
BCE has posted flat revenue and fewer mobile customers compared to last year, as it focuses on its growing artificial intelligence division and paying down debt, Irene Galea writes.
Canadian Tire has reported sales growth in its third quarter, even amid concerns about softening consumer spending, while expenses related to a major restructuring plan led to a decline in profits, Susan Krashinsky Robertson reports.
Bombardier says demand for its private jets is holding strong as the Canadian plane maker posted significant increases in several financial metrics for its latest quarter, Nicolas Van Praet writes.
On Wall Street, markets are watching earnings from AstraZeneca PLC and ConocoPhillips.
Data on Wednesday showed the U.S. services sector activity increased to an eight-month high in October as new orders grew solidly, while private payrolls rose 42,000 last month, exceeding expectations.
“Market is tight, companies are probably investing more in technology, probably not necessarily hiring more people, but not firing people either. So probably the way that even the economy and the labour market operate is changing a bit,” said Keiko Kondo, head of multi-asset investments for Asia at Schroders.
Overseas, the pan-European STOXX 600 was down 0.15 per cent in morning trading. Britain’s FTSE 100 slid 0.25 per cent, Germany’s DAX fell 0.23 per cent and France’s CAC 40 dropped 0.68 per cent.
In Asia, Japan’s Nikkei closed 1.34 per cent higher, while Hong Kong’s Hang Seng rose 2.12 per cent.
Commodities
Oil prices regained a little ground, buoyed by easing concerns over a potential supply glut as sanctions on Russian companies begin to bite.
Having closed yesterday at two-week lows, Brent crude futures were up 0.7 per cent to US$63.99 a barrel, while West Texas Intermediate (WTI) futures gained 0.9 per cent to US$60.11.
The latest sanctions on Russia’s biggest oil companies two weeks ago are sparking some concerns about supply disruptions, despite rising output from OPEC and its allies, analysts said.
“There is a little bit of an impact on prices [from the sanctions], but not a huge one,” said Jorge Montepeque at Onyx Capital Group. “Based on the numbers, it should be bigger, but the market still needs to be convinced there will be impact.”
In other commodities, spot gold was up 0.8 per cent to US$4,015.31 an ounce. U.S. gold futures for December delivery gained 0.8 per cent to US$4,024.60 an ounce.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 70.86 US cents to 70.97 US cents in early trading. The Canadian dollar was down about 0.57 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.43 per cent to 99.78.
The euro rose 0.39 per cent to US$1.1537. The British pound advanced 0.41 per cent to US$1.3105.
In bonds, the yield on the U.S. 10-year note was last down 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 trade surplus
Euro area retail sales and Germany industrial production
7 am ET: Bank of England monetary policy announcement. BOE kept its key rate steady as expected at 4 per cent, but a narrow vote and signs that Governor Andrew Bailey might soon join those seeking a rate cut keeps the door open for a move after the government’s budget later this month.
10 am ET: Canada Ivey PMI
10 am ET: U.S. global supply chain pressure index
10:30 am ET: Bank of Canada governor Tiff Macklem and senior deputy governor Carolyn Rogers testify before the Senate banking committee
Ontario fall fiscal update
With Reuters and The Canadian Press