Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
Equities
Canada’s main stock index traded at record highs early Monday, supported by gains in energy and mining stocks. On Wall Street, the Dow also hit a fresh high after the passage of a US$1-trillion infrastructure bill.
At 9:32 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 105.37 points, or 0.49 per cent, at 21,561.19.
The Dow Jones Industrial Average rose 88.51 points, or 0.24 per cent, at the open to 36,416.46.
The S&P 500 opened higher by 3.95 points, or 0.08 per cent, at 4,701.48, while the Nasdaq Composite gained 24.13 points, or 0.15 per cent, to 15,995.72 at the opening bell.
“This week’s main focus will still be on the risks that rising prices may do to the recovery as we head into year end with the latest U.S. PPI and CPI numbers for October set to show further increases, on Tuesday and Wednesday,” Michael Hewson, chief market analyst with CMC Markets U.K., said in a note.
Last week’s gains were helped by a better-than-expected reading on U.S. hiring in October and the passage of a US$1-trillion infrastructure bill by the House of Representatives.
In this country, Rogers Communications said late Sunday it won’t appeal a decision that allows Edward Rogers to replace directors of Canada’s largest wireless carrier without holding a shareholder meeting.
The Globe’s Alexandra Posadzki reports that the announcement from Rogers Communications means the decision by B.C. Supreme Court Justice Shelley Fitzpatrick will go unchallenged, ending weeks of uncertainty over control of the telecom and media giant. This statement came days after Mr. Rogers regained his role as the chair of the company’s board.
On the earnings front, Canadian investors will get results from MEG Energy. After the close, TSX operator TMX Group reports results. Key U.S. earnings this week include Walt Disney Co. and PayPal.
Overseas, the pan-European STOXX 600 was up 0.05 per cent by midday. Britain’s FTSE 100 fell 0.06 per cent. Germany’s DAX as off 0.17 per cent while France’s CAC 40 edged up 0.28 per cent.
In Asia, Japan’s Nikkei closed down 0.35 per cent. Hong Kong’s Hang Seng lost 0.43 per cent. Figures released over the weekend showed that China’s exports rose 27.1 per cent last month, topping market expectations.
Commodities
Crude prices gained on positive export data out of China and the passage of a US$1-trillion infrastructure bill in the United States.
The day range on Brent is US$82.53 to US$84. The range on West Texas Intermediate is US$81.05 to US$82.59. Both benchmarks fell last week, with Brent sliding 2 per cent and WTI dropping about 3 per cent.
A better-than-expected reading on Chinese exports raised optimism over the global economy. The passage by the House of Representatives also buoyed the demand outlook.
“Now that the OPEC+ is over with and COP26 is winding down, energy traders are in wait-and-see mode to see what will be the response from the Biden administration,” OANDA senior analyst Ed Moya said.
“It seems very likely the US will tap the strategic petroleum reserve and possibly unveil other actions.”
Prices also drew support from news Friday that Saudi Arabia raised the price of its benchmark crude for customers in Asia in December, exceeding market expectations.
In other commodities, gold prices were near a two-month high as markets await U.S. inflation data later in the week.
Spot gold was flat at US$1,816.96 per ounce, after hitting its highest since Sept. 7 at US$1,821.26 earlier. U.S. gold futures gained 0.1 per cent to US$1,818.40.
“Global bond yields have been tumbling quickly and that has revitalized the trade in gold,” Mr. Moya said.
“Even as the US labor market gets back on track and stocks continue to make fresh records, gold is seeing steady support.”
Currencies
The Canadian dollar was little changed in early going amid mixed global risk sentiment and firmer crude prices as its U.S. counterpart held steady against a group of world currencies.
The day range on the loonie is 80.21 US cents to 80.40 US cents.
There were no major Canadian releases on the calendar for Monday.
“There are no Canadian data releases today and none over the course of the week,” Shaun Osborne, chief FX strategist with Scotiabank, said.
“That leaves the CAD at the mercy of the broader market tone to some extent but we look for the CAD to remain generally well-supported on modest dips.”
On world markets, the U.S. dollar index was little changed on the day at 94.229, holding below the 15-month high it hit on Friday following stronger-than-expected U.S. jobs data, according to figures from Reuters.
The euro was slightly higher, up 0.1 per cent at US$1.1573.
Britain’s pound was steady around US$1.3486, having tumbled to a five-week low last week after the Bank of England defied market expectations by holding steady on interest rates.
The Australian dollar was down 0.1 per cent on the day at US$0.73992.
In bonds, the yield on the U.S. 10-year note was up at 1.479 per cent in the predawn period.
More company news
The Globe’s Josh O’Kane reports that Open Text Corp. says it will buy the Dallas-based Zix Corp. for US$484-million in cash to as it continues its multi-year strategy to deepen cybersecurity offerings for small and medium-sized businesses. The total transaction is worth US$860-million including debt, and values Zix at US$8.50 per share, slightly below its $8.74 closing price Friday.
Sun Life says it will raise its dividend for common shareholders by 20 per cent in December, 2021. As a result, Sun Life shareholders will receive a total dividend of 66 cents per share. The move comes after the federal regulator dropped its prohibition on banks and insurers from hiking dividends and launching share buybacks.
Aurora Cannabis Inc. says it has signed a deal to invest in a significant equity stake in Growery B.V., a Netherlands-based company that holds a license to participate in the country’s controlled cannabis supply chain experiment. The size of the investment was not immediately available.
Tesla Inc shares fell in premarket trading as investors prepared for its chief Elon Musk’s proposed sale of about a tenth of his holdings in the electric-car maker following his Twitter poll. Mr. Musk, Tesla’s chief executive officer, tweeted on Saturday that he would offload 10 per cent of his stock if users of the social media network approved the proposal.
The Globe’s Niall McGee reports Equinox Gold Corp is betting big on a new gold project in Ontario, but with the mining industry’s history of cost overruns and start up problems at new mines, the venture is far from risk-free. Late last month, Vancouver-based Equinox started construction of the Greenstone open-pit gold mine in Geraldton, Ont. Greenstone promises to be an important economic driver for Northern Ontario, creating more than 2,000 jobs during the construction phase, and another 500 positions once the mine starts production in 2024.
Economic news
(10:30 a.m. ET) U.S. Fed Chair Jerome Powell speaks at the Gender and the Economy Conference (videoconference)
With Reuters and The Canadian Press