Equities
Global markets were were largely negative with traders eyeing economic data and central banker commentary and bracing for results from France’s ongoing elections.
Shortly after the open, the Dow Jones Industrial Average was down 0.10 per cent at 39,131.51, the S&P 500 was down 0.13 per cent at 5,467.86, and the Nasdaq Composite was down 0.11 per cent at 17,859.79.
The Toronto Stock Exchange’s S&P/TSX composite index opened down 0.12 per cent amid broader losses, at 21,850.36.
European stocks fell as a relief rally following the first round of French parliamentary elections proved to be short-lived. Markets were eyeing the next round of French voting set for the weekend.
The pan-European STOXX 600 was down 0.57 per cent in early afternoon trading. Britain’s FTSE 100 declined 0.66 per cent, Germany’s DAX declined 0.76 per cent and France’s CAC 40 lost 0.36 per cent.
“The economic backdrop remains favorable for Europe, but political risk is back – in France – and proving impactful,” said Samy Chaar, chief economist at Lombard Odier.
Meanwhile, data showed euro zone inflation eased last month but a crucial services component remained stubbornly high, likely fuelling concern among some European Central Bank policymakers that price pressures could remain elevated.
U.S. trading volumes are expected to be light this week with the equity market closed on Thursday for U.S. Independence Day.
Wall Street investors were absorbing fresh jobs data and remarks from Federal Reserve Chair Jerome Powell that more evidence is needed before cutting interest rates. Traders are also looking to adjust portfolios ahead of the U.S. presidential election.
In Asia, Japan’s Nikkei increased 1.12 per cent, while Hong Kong’s Hang Seng rose 0.29 per cent.
Commodities
Oil prices climbed nearly 1 per cent on Tuesday, extending gains to two-month highs on expectations of rising summer driving demand and possible supply disruptions from Hurricane Beryl.
Brent crude futures rose 0.87 per cent to US$87.35 a barrel, their highest since April 30. West Texas Intermediate (WTI) crude was up 1.01 per cent at US$84.22 after touching its highest since April 26.
“A dangerous hurricane in the Caribbean Sea is expected to hit Mexico, intensifying concerns regarding the supply side of the equation,” said Charalampos Pissouros, senior investment analyst at brokerage XM.
Spot gold was down 0.2 per cent at US$2,327.90 per ounce.
Currencies and bonds
The Canadian dollar was up slightly against its U.S. counterpart.
The day range on the loonie was 72.69 US cents to 73.05 US cents after markets opened. The Canadian dollar was down about 0.18 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, dipped 0.1 per cent to 105.80.
The euro was down 0.13 per cent to US$1.0727. The British pound increased 0.15 per cent to US$1.2669.
In bonds, the yield on the U.S. 10-year note was slightly negative at 4.438 per cent.
In Japan, the U.S. dollar’s rose as high as 161.745 yen on Tuesday, a level not seen since December 1986, leaving traders on high alert for Japanese intervention.
Economic news
(9:30 a.m. ET) Canadian S&P Global Manufacturing PMI for June.
(9:30 a.m. ET) U.S. Fed chair Jerome Powell joins a policy panel at the ECB Forum on Central Banking in Sintra, Portugal.
(10 a.m. ET) U.S. Job Openings and Labor Turnover Survey for May.
Also: Canadian auto sales for June.
With Reuters and The Canadian Press