Equities
Global stock were mixed as investors weighed whether the assassination attempt on presidential candidate Donald Trump increased his chances of victory.
Wall Street’s main indexes rose at the open on greater odds of a Trump win, while hopes for Federal Reserve rate cuts further boosted sentiment.
The Dow Jones Industrial Average rose 0.34 per cent to 40,138.40, the S&P 500 advanced 0.41 per cent to 5,638.16, while the Nasdaq Composite gained 0.48 per cent to 18,485.91 at the bell.
The S&P/TSX Composite Index declined 0.1 per cent at the open to 22,649.97.
In Canada, investors are getting results from Corus Entertainment Inc.
The broadcaster has reported a 55-per-cent increase in third-quarter loss to $769.9-million as its revenue fell 16 per cent.
On Wall Street, markets are watching earnings from Goldman Sachs and BlackRock Inc.
Goldman Sachs’s profit more than doubled in the second quarter to US$3.04-billion or US$8.62 a share, bolstered by higher fees from debt underwriting and a strong performance in its fixed-income trading business.
Assets of BlackRock, the world’s largest money manager, hit a record high of US$10.65-trillion in the second quarter and the firm posted a 9-per-cent jump in profit, as stronger equity markets drove robust fee income growth.
Eren Osman, managing director of wealth management at Arbuthnot Latham, said a likelier Trump victory would be seen as a positive for risk assets, noting a strong rally for bitcoin since the weekend, but added a word of caution.
“It would be reasonable to suggest it invigorates the Trump supporters to go vote, but they were probably the population of voters that were most likely to go and vote anyway,” Osman said.
Overseas, European stocks opened lower, after weak economic data from China helped set a cautious tone. The pan-European STOXX 600 was fell 0.6 per cent in morning trading. Britain’s FTSE 100 slid 0.68 per cent, Germany’s DAX declined 0.61 per cent and France’s CAC 40 retreated 0.89 per cent.
In Asia, Hong Kong’s Hang Seng closed 1.52 per cent lower, while the Nikkei paused for a holiday in Japan.
Commodities
Oil held its ground, with political uncertainty in the U.S. and the Middle East supporting prices, offsetting downward pressure from a stronger dollar and weak demand in top importer China.
Brent crude futures were up 3 cents to US$85.06 a barrel, while West Texas Intermediate (WTI) crude stood at US$82.28 a barrel, down 7 cents.
“Markets ... will probably become a little more defensive” in reaction to the Trump assassination attempt, said John Evans at oil broker PVM.
In other commodities, spot gold was steady at US$2,413.09 per ounce, and U.S. gold futures fell 0.1 per cent to $2,418.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 73.18 US cents to 73.36 US cents. The Canadian dollar was up about 0.56 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, was up at 104.12.
The euro advanced 0.05 per cent to US$1.0913. The British pound gave back 0.02 per cent to US$1.2986.
In bonds, the yield on the U.S. 10-year note rose modestly to 4.223 per cent.
Other corporate news
U.S. steelmaker Cleveland-Cliffs says it is acquiring Canada’s Stelco Holdings in a deal valued at $3.85-billion. The deal is expected to close in the fourth quarter.
Economic news
China’s Third Plenum policy meeting runs through Thursday
China real GDP for the second quarter, plus June industrial production, retail sales and fixed asset investment
Euro area industrial production
8:30 am ET: Canada manufacturing sales rose 0.4 per cent to $71.4-billion in May, following an increase of 1.1 per cent in April.
8:30 am ET: Canada wholesale trade fell 0.8 per cent to $82.2-billion in May, with the largest subsector decline coming from motor vehicles, parts and accessories.
8:30 am ET: Canada new motor vehicle sales
10:30 am ET: Bank of Canada Business Outlook Survey and Survey of Consumer Expectations (Q2)
12:30 pm ET: Federal Reserve chief Jerome Powell speaks at the Economic Club of Washington D.C.
With Reuters and The Canadian Press