Equities
Global stocks edged higher, while bond yields hovered near multidecade highs as high oil prices stemming from the Middle East conflict stoked concerns about inflation and rate hikes.
Wall Street futures pointed up after major North American stock indexes closed lower on Thursday. Dow futures were up 0.41 per cent, S&P futures up 0.23 per cent and Nasdaq futures up 0.13 per cent, as of 8:37 a.m. ET. TSX futures edged 0.3-per-cent higher.
In Canada, investors got results from Canadian National Railway Co., which posted higher second-quarter profit and revenue and raised its full-year guidance.
On Wall Street, markets are watching earnings from American Express Co., Exxon Mobil Corp., NextEra Energy Inc., and Verizon Communications Inc.
Attacks by Iran-aligned Houthis on Saudi tankers in the Red Sea risk choking off a second crucial Middle East artery for global oil supplies, alongside Iran’s near-closing of the Strait of Hormuz.
“Two of the world’s busiest shipping corridors are under threat in the same month, and markets are only just beginning to work out what that means,” said Nigel Green, CEO of deVere Group, a financial advisory firm.
Overseas, the pan-European STOXX 600 was up 0.36 per cent in morning trading. Britain’s FTSE 100 rose 0.09 per cent, Germany’s DAX climbed 0.77 per cent and France’s CAC 40 advanced 0.35 per cent.
In Asia, Japan’s Nikkei closed 2.73 per cent lower, while Hong Kong’s Hang Seng lost 0.98 per cent.
Commodities
Oil futures prices fell over 3 per cent but are still set for hefty weekly gains because of concerns about disrupted energy flows.
Brent futures fell nearly 3.96 per cent to US$96.70 a barrel, but remained on course to advance 9.7-per-cent this week. West Texas Intermediate futures were down 3.42 per cent at US$89.04 a barrel, on track for a nearly 8-per-cent weekly rise.
“Major hubs of oil production or supply routes are surrounded by war,” said PVM Oil Associates analyst John Evans. “The short-term outlook is bullish.”
In other commodities, spot gold rose 0.2 per cent to US$4,055.38 an ounce, while U.S gold futures for August delivery gained 0.2 per cent to US$4,058.10.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 70.97 US cents to 71.09 US cents in early trading. The Canadian dollar was up about 0.79 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, fell 0.08 per cent to 101.21. The dollar was pegged at $1.4084.
The euro gained 0.09 per cent to US$1.1388. The British pound climbed 0.02 per cent to US$1.3318.
In bonds, the yield on the U.S. 10-year note was last down at 4.686 per cent.
Economic news
Japan inflation data and PMIs
Euro area PMIs and consumer confidence reports
8:30 a.m. ET: Canada industrial product price index and raw materials price index for June.
8:30 a.m. ET: Canadian manufacturing sales for June
8:30 a.m. ET: Canadian wholesale trade for June
8:30 a.m. ET: Canadian new housing price index for June. It’s expected to be down 0.3 per cent on a monthly basis, or a decline of 2.5 per cent on an annual basis.
9:45 a.m. ET: S&P global PMIs
10 a.m. ET: U.S. new home sales
With Reuters and The Canadian Press