Equities
Global markets were mixed as investors held back from placing more bets ahead of a much-anticipated update on fiscal stimulus from Beijing this weekend and more economic data.
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.17 per cent higher at 24,342.63 after the release of jobs numbers for September. Canadian employment rebounded last month and the unemployment rate ticked lower, forcing investors to trim their bets that the Bank of Canada will deliver a larger interest-rate cut later this month.
Canadian markets will be closed Monday for the Thanksgiving holiday
U.S. stock indexes were mixed at the open, as traders kept bets on a 25-basis-point Federal Reserve rate cut in November intact after producer prices data, while a slump in Tesla shares dragged on the Nasdaq. The Dow Jones Industrial Average rose 0.13 per cent to 42,507.53, the S&P 500 slipped 0.09 per cent to 5,775.09, and the Nasdaq Composite dropped 0.35 per cent to 18,217.734 at the bell.
On Wall Street, big bank earnings season kicks off with results from Bank of New York Mellon, JPMorgan Chase & Co. and Wells Fargo & Co.
“China will unveil more details about its fiscal stimulus plans on Saturday and their announcement should live up to high market expectations to prevent investors’ enthusiasm from entirely fading,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, wrote in a note. “The expectation is a 2 trillion yuan package, 10 times the number pronounced by authorities earlier this week.”
Overseas, the pan-European STOXX 600 was up 0.41 per cent in morning trading. Britain’s FTSE 100 added 0.11 per cent, Germany’s DAX climbed 0.41 per cent and France’s CAC 40 rose 0.35 per cent.
In Asia, Japan’s Nikkei closed 0.57 per cent higher, while Hong Kong’s Hang Seng was closed for a holiday.
Growth, shops and rates: World market themes for the week ahead
Commodities
Oil prices softened but were set for a second weekly gain as investors weighed the impact of hurricane damage on U.S. demand against any broad supply disruption if Israel attacks Iranian oil sites.
Brent crude oil futures fell 0.9 per cent to US$78.67 a barrel, while West Texas Intermediate crude (WTI) futures slid 0.9 per cent to US$75.14 a barrel.
“Oil prices continue to extend (their) run week-on-week, with geopolitical risks fueling the rebound,” said Yeap Jun Rong, market strategist at IG. But he added that reservations over high crude inventories and a possibly more gradual easing of the U.S. Fed rate have put the recent rally on hold.
In other commodities, spot gold was up 0.7 per cent at US$2,647.55 an ounce. U.S. gold futures gained about 1 per cent to US$2,665.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 72.61 US cents to 72.79 US cents in early trading. The Canadian dollar was down about 1.26 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, dropped 0.08 per cent to 102.91.
The euro was flat at US$1.0939. The British pound gained 0.1 per cent to US$1.3073.
In bonds, the yield on the U.S. 10-year note was last up at 4.100 per cent. U.S. bond markets will be closed on Monday for Columbus Day.
Other corporate news
JPMorgan Chase’s profit dropped in the third quarter as it built up provisions for potential loan defaults, the bank says.
Wells Fargo’s third-quarter profit beat analysts’ expectations, helped by resilience in wealth management and lower provisions for credit losses.
Restaurant franchisor and operator MTY Food Group has reported lower profit and revenue for the third quarter, which it attributed to impairment charges on property, plants and equipment along with intangibles assets..
Economic news
Germany CPI
(8:30 a.m. ET) Canadian employment for September.
(8:30 a.m. ET) Canadian building permits for August. Estimate is a month-over-month decline of 10 per cent.
(8:30 a.m. ET) U.S. PPI Final Demand for September.
(10 a.m. ET) U.S. University of Michigan Consumer Sentiment Survey for October (preliminary reading).
(10:30 a.m. ET) Bank of Canada Business Outlook Survey and Survey of Consumer Expectations for Q3 is released.
With Reuters and The Canadian Press