Luke KawaThe Globe and Mail
The Before the Bell report is updated throughout the premarket to reflect the latest news developments and market moves. Check back later for updates.
U.S. stock futures are trading to the upside in a day filled with important economic data. S&P/TSX 60 futures are also in positive territory, with West Texas Intermediate crude catching a bid this morning.
With the Federal Reserve moving firmly into "data dependent" mode, and monetary policymakers' seeking confidence that inflation is trending back to 2 per cent before raising rates, this morning's CPI reading in the U.S. is being closely observed by traders.
Inflation came in flat year-over-year, while economists were expecting a 0.1 per cent decline. This firmer-than-anticipated reading briefly provided support for the U.S. dollar, and prompted futures to pare some of their advances.
Overnight, manufacturing surveys painted a mixed picture of the health of the global economy.
The potent trifecta of a falling euro, low oil prices, and more aggressive monetary stimulus seem to be just what the doctor ordered for the euro zone. The region's flash manufacturing Purchasing Managers' Index (PMI) for March hit a ten-month high of 51.9, with the new orders and employment sub-indexes reaching their highest levels since 2011. While Germany fared particularly well, the rest of the euro zone also showed improvement.
"Deflationary pressures also eased during the month, linked to higher wages and rising import costs resulting from the euro's depreciation," writes Markit chief economist Chris Williamson.
Meanwhile, the inflation rate in Britain fell to a record low of zero in February, largely due to falling energy costs, while core inflation also moderated.
European stocks are largely flat, with losses for the airlines following news that a German passenger plane crashed in southern France.
The Asian flash manufacturing surveys, however, were much less inspiring.
China's flash manufacturing PMI came in below 50, pointing to contraction in the sector, with the new orders, new export orders, and employment sub-indexes all coming in below this level. The headline number of 49.2 was an 11-month low.
"Relatively muted client demand has led firms to pass on savings in a bid to boost new work, and cut their selling prices at a similarly sharp rate," said Markit economist Annabel Fiddes.
Japan's flash print came in below economists' expectations at a level that suggests the manufacturing sector's rate of growth has sank to its slowest pace in ten months.
Equities in the region were mixed.
The United States' flash manufacturing survey is slated to be released at 9:45am ET.
Here's a look at the latest market numbers and other highlights ahead of the trading day.
Futures:
S&P 500 +0.16 per cent; Dow +0.2 per cent; Nasdaq +0.11 per cent
Equities:
Hong Kong's Hang Seng -0.39 per cent
Shanghai composite index +0.1 per cent
Japan's Nikkei -0.20 per cent
London's FTSE 100 +0.13 per cent
Germany's DAX +0.12 per cent
France's CAC 40 +0.19 per cent
Stoxx 600 +0.04 per cent
Commodities:
WTI crude oil (Nymex May) +0.33 per cent at $47.78 (U.S.) a barrel
Natural gas (Nymex Apr) +1.72 per cent at $2.78
Gold (Comex Apr) +0.47 per cent at $1,193.30 (U.S.) an ounce
Copper (Comex May) +0.23 per cent at $2.796 (U.S.) a pound
Currencies:
Canadian dollar at 80.11 (U.S.), up 0.0025
U.S. dollar index down -0.32 at 96.721
Bonds:
U.S. 10-year Treasury yield 1.9068 per cent, down 0.0052
ECONOMIC INDICATORS:
In February, headline inflation in the Untied States came in flat year-over-year relative to the consensus estimate for a 0.1 per cent decline. Core CPI rose 1.7 per cent year-over-year, in line with expectations.
(9 a.m. ET) FHFA house price index for January. Forecast is for a rise of 5.4 per cent from a year earlier.
(945 a.m. ET) Markit flash manufacturing PMI for March.
(10 a.m. ET) U.S. new home sales. Consensus is for a decline of 1.3 per cent from a year earlier to an annualized rate of 475,000.
STOCKS TO WATCH:
Lumenpulse Inc. acquired privately-held SDL Lighting Inc., which designs and manufactures outdoor LED products, for $3.2-million in cash.
The Canadian airlines – Air Canada and WestJet – are two stocks to keep an eye on, as their European counterparts suffered losses after reports that a plane crashed in France.
Freeport-McMoRan Inc. cut its quarterly dividend by 84 per cent to $0.05 per share due to the drop-off in commodity prices.
Earnings include: Alterra Power, EXFO Inc., Klondex Mines, Turquoise Hill, Carnival Corp., Christopher & Banks Corp., McCormick & Co., Sonic Corp.,Steelcase Inc.
ANALYST ACTIONS:
Yamana Gold Inc. was upgraded to "buy" from "hold" at TD Securities.
AGT Food & Ingredients Inc. was lowered to "sector perform" from "outperform" at Altacorp.
Ivanhoe Mines Ltd. was downgraded to "equal weight" from "overweight" by Morgan Stanley.