Equities
Global shares steadied ahead of U.S. price data that investors are banking on to show a renewed moderation in inflation, which could reinforce market bets on a Federal Reserve rate cut as early as September.
The Nasdaq opened lower after Nvidia and some other chip stocks remained under selling pressure. The Dow Jones Industrial Average rose 0.09 per cent to 39,184.49, the S&P 500 gained 0.09 per cent to 5,459.58, while the Nasdaq Composite dropped 0.28 per cent to 17,640.26 at the bell.
S&P/TSX Composite Index opened 0.5 per cent higher at 21,663.4, lifted by a rise in materials and utilities stocks.
Annual growth in the Fed’s favoured core index on Friday is expected to slow to 2.6 per cent in May, the lowest in more than three years.
“Note that low PCE deflator outcomes are needed to keep the [year-over-year] rate from rising through the course of this year given the string of low prints in the second half of 2023,” cautioned analysts at NAB.
Overseas, the pan-European STOXX 600 was up 0.65 per cent in morning trading. Britain’s FTSE 100 rose 0.71 per cent, Germany’s DAX gained 0.8 per cent and France’s CAC 40 added 1.04 per cent.
In Asia, Japan’s Nikkei closed 0.54 per cent higher at 38,804.65, while Hong Kong’s Hang Seng ended marginally lower at 18,027.71.
Commodities
Oil prices were steady as traders weighed support from expected summer demand and geopolitical tensions against a stronger dollar.
Brent crude futures was last up to US$85.29 a barrel, after settling down 0.6 per cent on Friday. West Texas Intermediate (WTI) crude futures slipped to US$80.38.
“The chief underlying reason behind the price strength ... is the growing confidence that global oil inventories will inevitably plunge during the summer in the northern hemisphere,” said Tamas Varga of oil broker PVM, referring to seasonal demand for oil products.
In other commodities, gold pared losses in line with the retreat in the U.S. dollar to trade up 0.3 per cent at US$2,327 an ounce.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 72.94 US cents to 73.21 US cents in the early premarket period. The Canadian dollar was down about 0.19 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.35 per cent to 105.42.
The euro advanced 0.47 per cent to US$1.0745. The British pound rose 0.4 per cent to US$1.2696.
In bonds, the yield on the U.S. 10-year note inched lower to 4.256 per cent ahead of the North American opening bell.
Economic news
Germany business climate
(10:30 a.m. ET) U.S. Dallas Fed Manufacturing Activity for June.
(1:30 p.m. ET) Bank of Canada governor Tiff Macklem speaks at the Winnipeg Chamber of Commerce (with press conference to follow at 3 p.m.)
With Reuters and The Canadian Press