Equities
Global stocks were mixed after a rally in tech shares that has made AI chipmaker Nvidia the world’s most valuable company.
U.S. markets are closed for the Juneteenth holiday, which will likely result in muted trading throughout the day.
The S&P/TSX composite index opened up at 21,618.31, boosted by materials stocks tracking higher metal prices, while investors awaited more cues on the interest rate cut trajectory in the United States and Canada.
In Canada, investors are getting results from Evertz Technologies Ltd. after the close.
Overseas, data showed British inflation returned to the 2-per-cent target in May, fuelling hopes for a rate cut at tomorrow’s Bank of England meeting – but that’s unlikely.
Instead, “it gives credibility to the idea that the Bank of England act in August at the latest and then that should be followed by the Fed in September,” Lombard Odier economist Samy Chaar said.
The pan-European STOXX 600 was flat in morning trading. Britain’s FTSE 100 was last up 0.22 per cent, Germany’s DAX slid 0.15 per cent and France’s CAC 40 dropped 0.48 per cent.
In Asia, Japan’s Nikkei closed 0.23 per cent higher at 38,570.76, while Hong Kong’s Hang Seng jumped 2.3 per cent to 18,430.39.
Commodities
Oil prices were largely steady near their highest levels in seven weeks as the market weighed concerns over escalating conflicts in the Middle East against demand worries following an unexpected build in U.S. crude inventories.
Brent crude futures for August, due to expire tomorrow, were up 20 US cents to US$85.53 a barrel, while the more active September contract gained 21 US cents to US$84.74. West Texas Intermediate (WTI) crude was up 3 US cents to US$81.60 a barrel.
In other commodities, gold prices inched higher after softer U.S. retail sales data yesterday boosted expectations that the Federal Reserve will cut interest rates this year.
Spot gold was up 0.1 per cent at US$2,330.27 an ounce.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 72.84 US cents to 72.97 US cents. The Canadian dollar was down about 0.16 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, edged lower to 105.22.
The euro was last up at US$1.0746. The British pound advanced 0.08 per cent to US$1.2719.
In bonds, the yield on the U.S. 10-year note retreated to 4.227 per cent.
Other corporate news
WestJet says it has started cancelling and consolidating flights as it prepares for a strike by its aircraft maintenance engineers and other technical operations employees.
Economic news
British CPI, which returned to its 2-per-cent target in May for the first time in nearly three years.
(8:30 a.m. ET) Canadian household and mortgage credit for April.
(10 a.m. ET) U.S. NAHB Housing Market Index for June.
(1:30 p.m. ET) Bank of Canada’s summary of deliberations for June 5 decision is released.
With Reuters and The Canadian Press