Equities
Global markets were mostly higher as Japan’s Nikkei recouped some of yesterday’s losses and euro zone inflation data boosted the case for faster European Central Bank interest rate cuts.
Wall Street’s main indexes slipped at the open ahead of the first of multiple job reports this week, a day after Federal Reserve Chair Jerome Powell pushed back against market expectations for outsized interest rate cuts.
The Dow Jones Industrial Average fell 0.16 per cent to 42,262.97, the S&P 500 gave back 0.08 per cent to 5,757.73, and the Nasdaq Composite dropped 0.19 per cent to 18,154.939 at the bell.
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.3 per cent lower at 23,926.21, with the energy sector leading declines as oil prices slid.
On Wall Street, markets are watching earnings from Nike Corp. and Paychex Inc.
“The ECB has little reason not to announce another rate cut in the October meeting,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, wrote in a note. “The ECB Chief Lagarde is giving a few hints that there will be more in the store for this month.”
Overseas, the pan-European STOXX 600 was up 0.44 per cent in morning trading. Britain’s FTSE 100 rose 0.51 per cent, Germany’s DAX climbed 0.6 per cent and France’s CAC 40 edged up 0.13 per cent.
In Asia, the Nikkei ended the session 1.93 per cent higher, while Hong Kong’s Hang Seng was closed for a holiday.
Commodities
Oil prices edged lower as a stronger supply outlook and tepid global demand growth outweighed fears over escalating conflict in the Middle East and its impact on crude exports from the region.
Brent crude futures were down 0.7 per cent to US$71.21 a barrel, while West Texas Intermediate (WTI) crude futures fell 0.8 per cent to US$67.62.
“The idea of returning Libyan crude and the forthcoming trimming of voluntary cuts by OPEC+ in December serves as interference for those contemplating reduced oil stocks in the U.S. and improving cracks,” said John Evans, analyst at oil broker PVM.
In other commodities, spot gold was 1.1 per cent higher at US$2,664.20 an ounce, and U.S. gold futures rose 0.5 per cent to US$2,673.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 73.85 US cents to 73.99 US cents. The Canadian dollar was up about 0.14 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.38 per cent to 101.17.
The euro fell 0.53 per cent to US$1.1078. The British pound declined 0.4 per cent to US$1.3322.
In bonds, the yield on the U.S. 10-year note was last down at 3.736 per cent.
Other business news
Dock workers on the U.S. East Coast and Gulf Coast began a strike early on Tuesday, their first large-scale stoppage in nearly 50 years, halting the flow of about half the nation’s ocean shipping after negotiations for a new labour contract broke down over wages.
Economic news
China’s markets closed (through Friday)
Japan jobless rate and manufacturing PMI
Euro zone CPI and manufacturing PMI. Inflation in the 20 countries that use the euro fell to 1.8 per cent in September, below the European Central Bank’s target of 2 per cent for the first time in more than three years, opening the door to faster interest rate cuts.
(9:30 a.m. ET) Canada’s S&P Global Manufacturing PMI for September, which strengthened for the first time in 17 months as market demand improved and lower borrowing costs bolstered confidence in the economic outlook.
(9:45 a.m. ET) U.S. S&P Global Manufacturing PMI for September.
(10 a.m. ET) U.S. ISM Manufacturing PMI for September.
(10 a.m. ET) U.S. construction spending for August. The Street is projecting a month-over-month rise of 0.1 per cent.
(10 a.m. ET) U.S. Job Openings & Labour Turnover Survey for August, which showed employers posted 8 million vacancies, unexpectedly up from 7.7 million in July.
Also: Canadian and U.S. auto sales for September.
With Reuters and The Canadian Press