Equities
Global shares steadied amid political turmoil in Europe, as investors look for direction from a string of central bank meetings in the region this week as well as fresh U.S. economic data and comments from Federal Reserve officials for more clarity on monetary policy.
U.S. stock indexes opened flat to lower, with the benchmark S&P 500 retreating from record highs. The Dow Jones Industrial Average fell 0.06 per cent to 38,565.18, the S&P 500 slipped 0.01 per cent to 5,431.11, and the Nasdaq Composite rose 0.05 per cent to 17,697.30 at the bell.
S&P/TSX composite index opened 0.32 per cent lower at 21,569.04, dragged down by materials and utilities stocks.
“A French challenge to the region’s fiscal arrangements would be problematic and have far-reaching implications,” warned analysts at JPMorgan. “At this stage, the situation in the run-up to the first round of voting is still very fluid.”
Overseas, the pan-European STOXX 600 was 0.11 per cent lower in morning trading. Britain’s FTSE 100 was down 0.17 per cent, Germany’s DAX rose 0.2 per cent and France’s CAC 40 added 0.38 per cent.
In Asia, Japan’s Nikkei dropped 1.83 per cent to 38,102.44, while Hong Kong’s Hang Seng closed 0.032 per cent lower at 17,936.12.
Commodities
Oil prices reversed earlier declines after Chinese economic data underscoring a bumpy recovery for the world’s biggest crude importer offset hopes for a boost to demand from the summer driving season in the northern hemisphere.
Brent crude futures were last up 0.44 per cent to US$82.98 a barrel, while West Texas Intermediate (WTI) futures advanced 0.48 per cent to US$78.83 a barrel.
“Last week’s robust rally was fueled by forecasts of strong 2024 demand from OPEC+ and the IEA. However, given OPEC’s vested interest in crude oil, there is some skepticism around OPEC’s forecasts,” said Tony Sycamore, a market analyst at IG in Singapore.
In other commodities, gold dipped 0.5 per cent to US$2,321.49 an ounce, unwinding some of last week’s 1.7-per-cent bounce. U.S. gold futures dipped 0.6 per cent to US$2,334.40.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart, which held firm in early trading.
The day range on the loonie was 72.70 US cents to 72.83 US cents in the early premarket period. The Canadian dollar was down about 0.88 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, edged up to 105.59.
The euro recouped slightly after last week’s drop, last up 0.07 per cent to US$1.0712. The British pound slid 0.16 per cent to US$1.2667.
In bonds, the yield on the U.S. 10-year note inched higher to 4.274 per cent ahead of the North American opening bell.
Other corporate news
Corus Entertainment Inc. has announced that Doug Murphy is retiring as president and CEO of the company and will be replaced by pair of company veterans. The news comes after the broadcaster said it is cutting jobs at Global News division, and Rogers Communications picked up some of its TV lifestyle content.
Economic news
China retail sales, industrial production and fixed asset investment
(8:15 a.m. ET) Canadian housing starts for May, which climbed an annualized 10 per cent compared with April, CMHC says.
(8:30 a.m. ET) Canadian construction investment for April.
(8:30 a.m. ET) Canada’s international securities transactions for April.
(8:30 a.m. ET) U.S. Empire State Manufacturing Survey for June.
(9 a.m. ET) Canadian existing home sales and average prices for May. Sales fell 0.6 per cent from April and were down 5.9 per cent on an annual basis, CREA data show.
(9 a.m. ET) Canada’s MLS Home Price Index for May. Estimate is a decline of 2.5 per cent from the same period a year ago.
With Reuters and The Canadian Press