Equities
Global markets turned higher while oil prices whipsawed following a report that the U.S. was considering fresh military action against Iran.
Wall Street futures were in the black as investors weighed strong tech earnings against renewed inflation worries.
Futures of the resource-heavy TSX pointed higher as markets assessed modest GDP growth in line with expectations.
In Canada, investors are getting results from Air Canada, Bombardier Inc., Agnico Eagle Mines Ltd., Eldorado Gold Corp., Eldorado Gold Corp., AltaGas Ltd. and Spin Master Corp.
Bombardier says demand for its private jets remains strong and its strategy to generate more profit from servicing aircraft is paying off as the company reported its highest free cash flow in nearly two decades during its latest quarter, Nicolas Van Praet reports.
On Wall Street, markets are watching earnings from Apple Inc., Eli Lilly and Co., Mastercard Inc., Caterpillar Inc., Merck & Co. Inc., Amgen Inc., Bristol-Myers Squibb Co. and ConocoPhillips
Overseas, the pan-European STOXX 600 was up 0.9 per cent in morning trading. Britain’s FTSE 100 advanced 1.55 per cent, Germany’s DAX climbed 0.96 per cent and France’s CAC 40 edged up 0.11 per cent.
In Asia, Japan’s Nikkei closed 1.06 per cent lower, while Hong Kong’s Hang Seng fell 1.28 per cent.
Commodities
Global oil prices retreated after hitting a four-year high of more than US$126 a barrel on Thursday on concerns that the U.S.-Iran war could worsen and lead to a protracted Middle East oil supply disruption that could hurt global economic growth.
Earlier in the day, the market moved higher after Axios reported that U.S. President Donald Trump is slated to receive a briefing today on plans for a series of military strikes on Iran in hopes it will return to negotiations on its nuclear program.
Brent crude futures were down 3.3 per cent to US$114.10 a barrel after touching an intraday high of US$126.41, the loftiest since March 9, 2022. West Texas Intermediate (WTI) futures were down 1.4 per cent to $105.30 a barrel.
Tamas Varga of oil broker PVM said the decline did not look related to a specific development and reflected the heightened volatility in the market since the Iran war started on February 28.
“It just sums up the unpredictable nature of trading in a Trump world,” he said.
In other commodities, spot gold was up 1.9 per cent to US$4,630.03 an ounce after falling to its lowest point since March 31 in the previous session. U.S. gold futures for June delivery rose 1.8 per cent to US$4,642.90.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 73.02 US cents to 73.28 US cents in early trading. The Canadian dollar was up about 1.8 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, declined 0.45 per cent to 98.52. The U.S. dollar traded at $1.3672.
The euro climbed 0.3 per cent to US$1.1712. The British pound advanced 0.38 per cent to US$1.3525.
In bonds, the yield on the U.S. 10-year note was last down at 4.392 per cent.
Economic news
China’s PMI
Japan’s retail sales and industrial production
Euro zone’s GDP and CPI
Germany’s GDP and unemployment
ECB’s monetary policy meeting and Bank of England rate decision
8:30 a.m. ET: Canada’s monthly GDP for February, which showed growth of 0.2 per cent, in line with expectations.
8:30 a.m. ET: Canada’s payroll survey for February.
8:30 a.m. ET: U.S. GDP and GDP price index for Q1. U.S. economic growth picked up in the first quarter on a rebound in government spending after a crippling government shutdown. Gross domestic product increased at a 2.0 per cent annualized rate last quarter, compared with the consensus forecast of 2.1 per cent.
8:30 a.m. ET: U.S. personal spending and income for March. The Street expects month-over-month rises of 0.9 per cent and 0.3 per cent, respectively.
8:30 a.m. ET: U.S. core PCE price index for March. Consensus is a gain of 0.3 per cent from February and up 3.2 per cent year-over-year.
8:30 a.m. ET: U.S. employment cost index for Q1. Consensus is a rise of 0.8 per cent from Q4 and up 3.3 per cent year-over-year.
8:30 a.m. ET: U.S. initial jobless claims for week of April 25. Estimate is 212,000, down 2,000 from the previous week.
9:45 a.m. ET: U.S. Chicago PMI for April.
10 a.m. ET: U.S. leading indicator for February.
With Reuters and The Canadian Press