Equities
Global markets were muted as investors awaited a crucial earnings season for the AI sector.
Wall Street futures were mixed with the Dow turning lower as traders returned from the holiday long weekend.
TSX futures were in positive territory.
Investors will be watching closely for how artificial intelligence-related companies are faring amid some fears about a bubble in the upcoming earnings season.
“The upcoming earnings season should be a test for the AI theme and likely shape the market performance over the coming months,” said Mohit Kumar, an economist at Jefferies.
“There have been concerns about excess capacity and whether AI capex can deliver the expected returns. We are optimistic on the earning season. Capex remains strong and as long as money continues to flow, AI related sectors should remain well-supported.”
Overseas, the pan-European STOXX 600 was down 0.33 per cent in morning trading. Britain’s FTSE 100 slid 0.29 per cent, Germany’s DAX declined 0.14 per cent and France’s CAC 40 inched gave back 0.16 per cent.
In Asia, Japan’s Nikkei closed little changed, while Hong Kong’s Hang Seng rose 1.14 per cent.
Commodities
Oil prices fell after OPEC+ agreed to further increase its output targets from August while exports from key producers via the Strait of Hormuz are recovering, potentially adding to global supplies.
Brent crude futures dropped 0.4 per cent to US$71.83 a barrel. West Texas Intermediate (WTI) crude traded at US$68.32 a barrel, down 0.54 per cent.
“They are selling into a falling market, offering little hope of an imminent price recovery,” PVM analysts said in a note. “However, lower oil prices will undoubtedly stimulate demand further down the line.”
In other commodities, spot gold was down 0.46 per cent to $4,156.36 an ounce. U.S. gold futures for August delivery climbed 1.1 per cent to US$4,168.90 per ounce.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 70.22 US cents to 70.47 US cents in early trading. The Canadian dollar was down about 1.96 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, gained 0.25 per cent to 101.11. The dollar was pegged at $1.4235.
The euro slid 0.19 per cent to US$1.1414. The British pound declined 0.05 per cent to US$1.3344.
In bonds, the yield on the U.S. 10-year note was last down at 4.466 per cent.
Other corporate news
Rogers Communications Inc. has signed an agreement to buy the remaining 25-per-cent stake in Maple Leaf Sports & Entertainment from Kilmer Sports Inc. for $4.35-billion, giving it full control over Toronto’s top sport teams and one step closer to its minority sale strategy, Irene Galea reports.
Economic news
China’s foreign reserves
Euro zone’s retail sales
Germany’s factory orders
9:30 a.m. ET: Canada’s S&P Global Services PMI for June.
9:45 a.m. ET: U.S. S&P Global Services/Composite PMI for June.
10 a.m. ET: U.S. ISM Services PMI for June.
11:30 a.m. ET: Bank of Canada’s Business Outlook Survey and Survey of Consumer Expectations for the second quarter is released.
With Reuters and The Canadian Press