Equities
Global stocks were mixed amid investor caution ahead of Japan’s weekend election and crucial U.S. economic data and corporate earnings next week. The close-run race for the White House and expectations the U.S. Federal Reserve will resist rapid rate cuts added to shaky sentiment.
Wall Street’s main indexes opened higher as Treasury yields eased and investors looked ahead to quarterly results from some of the biggest companies. The Dow Jones Industrial Average rose 0.24 per cent to 42,477.51, the S&P 500 gained 0.29 per cent to 5,826.75, and the Nasdaq Composite advanced 0.53 per cent to 18,512.577 at the bell
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.17 per cent higher at 24,593.85 on gains in energy and real estate shares.
In Canada, investors are getting results from Corus Entertainment Inc.
On Wall Street, markets are watching earnings from Aon PLC, Colgate-Palmolive Co., HCA Holdings Inc. and Vale SA.
With the U.S. presidential candidates neck and neck in crucial swing states, investors are anxious about a contested result roiling world markets and unleashing fresh geopolitical uncertainty.
“I think we might have two or three months of maximum uncertainty and social risk. And the markets would not like that at all,” Carmignac chief economist for cross-asset Raphael Gallardo said.
Overseas, the pan-European STOXX 600 was down 0.04 per cent in morning trading. Britain’s FTSE 100 was flat, Germany’s DAX edged up 0.07 per cent and France’s CAC 40 dipped 0.16 per cent.
In Asia, Japan’s Nikkei closed 0.6 per cent lower, while Hong Kong’s Hang Seng rose 0.49 per cent.
Ready for an action-packed week?: World market themes to watch
Commodities
Oil prices were on track for a weekly gain as tensions in the Middle East and a restart in Gaza ceasefire talks in the coming days kept traders on edge.
Brent crude futures climbed 1.2 per cent to US$75.14 a barrel, while West Texas Intermediate crude (WTI) was at US$70.96 a barrel, up 1.1 per cent.
“We remain of the view that the right price for crude oil currently is around $70 where it is now, as we await fresh price drivers, including the outcome of China’s NPC Standing Committee meeting as well as Israel’s response to Iran’s October 1 missile attack,” IG market analyst Tony Sycamore said in a note, referring to WTI prices.
In other commodities, spot gold eased 0.4 per cent to US$2,724.50 an ounce. U.S. gold futures fell 0.4 per cent to US$2,738.20.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 72.14 US cents to 72.23 US cents in early trading. The Canadian dollar was down about 2.4 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, declined 0.12 per cent to 103.93.
The euro rose 0.09 per cent to US$1.0837. The British pound climbed 0.13 per cent to US$1.2995.
In bonds, the yield on the U.S. 10-year note was last down at 4.190 per cent.
Other corporate news
Corus Entertainment Inc. has reported a fourth-quarter loss compared with a profit a year ago as its revenue fell 21 per cent. It also announced that it has signed an deal to amend and restate its existing syndicated, senior secured credit facilities with its bank group.
Economic news
Japan CPI
ECB three-year CPI expectations
(8:30 a.m. ET) Canadian retail sales for August, which increased 0.4 per cent, weaker than the 0.5-per-cent consensus estimate.
(8:30 a.m. ET) Canadian new housing price index for September, which was unchanged, as forecast.
(8:30 a.m. ET) Canada’s manufacturing sales for September.
(8:30 a.m. ET) U.S. durable orders for September, which increased more than expected, but business spending on equipment likely slowed in the third quarter.
(10 a.m. ET) U.S. University of Michigan Consumer Sentiment Index for October.
(2:30 p.m. ET) The Bank of Canada Governor Tiff Macklem will address journalists and answer questions at the sidelines of the IMF meeting.
Also: Ottawa’s budget balance for August.
With Reuters and The Canadian Press