Equities
Global markets turned higher in choppy trading as technology shares got a boost from resurgent AI optimism, while broader equity markets eyed oil prices and bond yields for direction.
Wall Street futures were mixed after the Nasdaq yesterday surged to its first all-time closing high since June 2.
TSX futures were in the black.
On Wall Street, markets are watching earnings from AutoZone Inc.
Meta shares jumped by more than 11 per cent by the close yesterday in their largest one-day rise since April, 2024, helping propel a range of AI-linked stocks, such as AMD, which hit the US$1-trillion valuation mark, while Intel and Arm Holdings jumped 12.2 per cent and 17 per cent, respectively.
“This suggests that demand for costly AI tools is robust and worth the hundreds of billions of capex spent by the hyperscalers,” Kathleen Brooks, research director at XTB, said.
“If there is widespread adoption of [Meta’s] Muse, it could add to demand for other AI tools, which could lift the AI sector, after a rough few months,” she said.
Overseas, the pan-European STOXX 600 was up 0.46 per cent in morning trading. Britain’s FTSE 100 edged up 0.13 per cent, Germany’s DAX rose 0.61 per cent and France’s CAC 40 advanced 0.5 per cent.
In Asia, Japanese markets were closed for a holiday, while Hong Kong’s Hang Seng climbed 0.18 per cent.
Commodities
Oil prices fell after reports that Iran said it could reopen the Strait of Hormuz within seven days if the U.S. takes initial steps to ease military pressure, easing concerns over disruptions to a key global oil shipping route.
The Brent crude futures November contract slid 1.5 per cent to US$98.79 a barrel. The West Texas Intermediate (WTI) November contract was down 2.2 per cent to US$90.34 a barrel.
The reports could be a positive sign that diplomacy efforts may be working, said Hamad Hussain, senior climate and commodities economist at Capital Economics.
“There may also be other obstacles, such as the issue of tolls and fees, to overcome before a lasting solution can be achieved,” Hussain added.
In other commodities, spot gold declined 0.5 per cent to US$4,321.74 an ounce. U.S. gold futures fell 0.6 per cent to US$4,359.20.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 71.16 US cents to 71.33 US cents in early trading. The Canadian dollar was down about 1.48 per cent against the greenback over the past month. It traded at $1.4052 per US$1.
The U.S. dollar index, which weighs the greenback against a group of currencies, climbed 0.03 per cent to 100.46.
The euro inched up 0.01 per cent to US$1.1465. The British pound slipped 0.07 per cent to US$1.3358.
In bonds, the yield on the U.S. 10-year note was last down at 4.943 per cent.
Economic news
Euro zone consumer confidence
8:15 a.m. ET: U.S. ADP National Employment Report 4-week average change for Sept. 5.
With Reuters and The Canadian Press