Equities
Global markets struggled for direction in cautious trading ahead of tomorrow’s U.S. presidential election, which is still too close to call, and an expected Federal Reserve interest rate cut later in the week.
U.S. stocks opened flat as traders stayed away from large bets in an action-packed week. The Dow Jones Industrial Average fell 0.13 per cent to 41,998.87, the S&P 500 slipped 0.67 points to 5,728.13, and the Nasdaq Composite dropped 0.23 per cent to 18,197.59 at the bell.
The Toronto Stock Exchange’s S&P/TSX composite index opened or 0.07 per cent lower at 24,238.55, pulled down by communications shares.
In Canada, investors are getting results from Brookfield Asset Management Ltd., Sun Life Financial Inc., Toromont Industries Ltd. and Cargojet Inc.
On Wall Street, markets are watching earnings from Constellation Energy Corp., Marriott International Inc. and Palantir Technologies Inc.
“The clock is ticking, and soon the suspense will break over who will be the next U.S. president. Even though the prediction markets have been in favour of a [Donald] Trump victory, the CNN poll this morning prints a 48-per-cent chance for a [Kamala] Harris win, versus 47 per cent assessed to a Trump victory,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, wrote in a note. “The worst possible outcome for the market would be a too close race and a contested outcome.”
Overseas, the pan-European STOXX 600 was little changed in morning trading. Britain’s FTSE 100 rose 0.43 per cent, Germany’s DAX declined 0.35 per cent and France’s CAC 40 slid 0.27 per cent.
In Asia, markets in Japan were closed for a holiday, while Hong Kong’s Hang Seng closed up 0.3 per cent.
Commodities
Oil prices rose more than 2 per cent on a decision by OPEC+ to delay by a month plans to increase output, while the market braced for a crucial week that includes the U.S. election and a key meeting in China.
Brent futures were up 2.3 per cent to US$74.81. West Texas Intermediate (WTI) climbed 2.6 per cent a barrel to US$71.30.
“Considering ongoing economic growth concerns, we believe [OPEC+] wants more clarity on the economic impact of the interest rate cuts in the U.S. and the fiscal and monetary policy easing in China,” said UBS analyst Giovanni Staunovo.
“The group should also have clarity on the next U.S. president and the impact of compensation cuts from countries that produced above their ceiling in the past.”
In other commodities, spot gold was steady at US$2,740.69 an ounce, while U.S. gold futures were flat at US$2,749.80.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 71.59 US cents to 71.99 US cents in early trading. The Canadian dollar was down about 2.1 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, fell 0.58 per cent to 103.67. The dollar’s decline may be linked to a poll that showed Harris taking a surprise three-point lead in Iowa, thanks largely to her popularity among female voters, dealers said.
The euro rose 0.67 per cent to US$1.0908. The British pound gained 0.24 per cent to US$1.2976.
In bonds, the yield on the U.S. 10-year note was last down at 4.286 per cent.
Other corporate news
Bell Canada parent BCE Inc. is expanding into the United States by acquiring internet provider Ziply Fiber for $5-billion, while also putting dividend hikes on hold in order to help fix its balance sheet.
Brookfield Asset Management Ltd. has reported rising third-quarter profits as its growing credit and insurance businesses brought in billions of dollars of new capital that generate fees.
Economic news
Japan markets closed
Euro zone manufacturing PMI
(10 a.m. ET) U.S. factory orders for September. The Street is projecting a decline of 0.4 per cent from August.
(10:30 a.m. ET) Bank of Canada’s Market Participants Survey for Q3
With Reuters and The Canadian Press