Equities
Global markets drifted as traders turned their attention to the Federal Reserve meeting and the implications of the U.S. allowing Nvidia’s second-best chips to be exported to China.
Wall Street futures were muted, while TSX futures inched lower.
In Canada, investors are getting results from Groupe Dynamite Inc.
On Wall Street, markets are watching earnings from AutoZone Inc. and GameStop Corp.
A Fed 25-basis-point rate cut is all but priced in, but there is plenty more for investors to be watching.
“Between the possible dissents, Fed chair [Jerome] Powell’s tone, and the summary of economic projections, I think there’s a lot of ways markets could be surprised,” said Erica Camilleri, senior global macro analyst at Manulife Investment Management.
Overseas, the pan-European STOXX 600 was down 0.09 per cent in morning trading. Britain’s FTSE 100 gained 0.9 per cent, Germany’s DAX rose 0.28 per cent and France’s CAC 40 declined 0.56 per cent.
In Asia, Japan’s Nikkei closed 0.14 per cent higher, while Hong Kong’s Hang Seng dropped 1.29 per cent.
Commodities
Oil prices steadied after falling 2 per cent in the previous session, with markets keeping a close eye on peace talks to end Russia’s war in Ukraine, concerns about ample supply and a looming decision on U.S. interest rates.
Brent crude futures gained 0.4 per cent to US$62.71 a barrel. West Texas Intermediate crude (WTI) was at US$59.08 a barrel, up 0.3 per cent.
“Oil is keeping to a tight trading range until we get a better idea of which way the peace talks will go,” KCM Trade chief market analyst Tim Waterer said.
“If the talks break down, we expect oil to move higher, or if progress is made, and there is a likelihood of Russian supply to the global energy market resuming, prices would be expected to drop,” he added.
In other commodities, spot gold rose 0.36 per cent to US$4,203.65 an ounce. U.S. gold futures for February delivery rose 0.4 per cent to US$4,232.90 an ounce.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 72.15 US cents to 72.28 US cents in early trading. The Canadian dollar was up 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, edged up 0.03 per cent to 99.12.
The euro was down 0.05 per cent to US$1.1636. The British pound slid 0.08 per cent to US$1.3311.
In bonds, the yield on the U.S. 10-year note was last down at 4.149 per cent.
Economic news
Japan machine tool orders
Germany trade surplus
10 a.m. ET: U.S. Job Openings & Labor Turnover Survey for October.
Also: U.S. Federal Reserve meeting begins
With Reuters and The Canadian Press