Equities
Global markets were mostly lower as investors flocked to safe-haven assets after President Vladimir Putin updated Russia’s nuclear doctrine amid escalating tensions with the United States over Ukraine.
Wall Street’s main indexes opened lower. The Dow Jones Industrial Average fell 0.34 per cent to 43,243.27, the S&P 500 slid 0.4 per cent to 5,870.05, and the Nasdaq Composite dropped 0.49 per cent to 18,699.705 at the bell.
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.75 per cent lower at 24,790.58 amid broader losses led by technology shares.
Markets were assessing October inflation data, which showed an uptick to 2 per cent, modestly higher than some estimates. But that was enough for money markets to price in higher odds of a 25-basis-point rate cut by the Bank of Canada next month.
In Canada, investors are getting results from George Weston Ltd.
On Wall Street, markets are watching earnings from Walmart Inc., Lowe’s Cos. Inc. and Medtronic PLC.
“The market’s movement appears to be driven by this morning’s news about changes to Russia’s nuclear doctrine,” said Michael Weidner, co-head of global fixed income at Lazard Asset Management.
Overseas, the pan-European STOXX 600 was down 1.4 per cent in morning trading. Britain’s FTSE 100 declined 0.65 per cent, Germany’s DAX fell 1.77 per cent and France’s CAC 40 gave back 1.77 per cent.
In Asia, Japan’s Nikkei closed 0.51 per cent higher, while Hong Kong’s Hang Seng gained 0.44 per cent.
Commodities
Oil prices steadied as the restart of production at Norway’s Johan Sverdrup oilfield offset investor concerns about an escalation in the Russia-Ukraine war.
Brent crude futures were down 0.2 per cent to US$73.18 a barrel, while West Texas Intermediate (WTI) crude futures slipped 0.3 per cent to US$68.97.
Investors are wary, said Toshitaka Tazawa, an analyst at Fujitomi Securities, as they are “assessing the direction of the Russia-Ukraine war after the weekend’s escalation.”
In other commodities, spot gold rose 1 per cent to US$2,637.10 an ounce after prices gained 2 per cent yesterday, recovering from a two-month low hit on Thursday. U.S. gold futures advanced 1 per cent to US$2,641.10.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 71.23 US cents to 71.55 US cents in early trading. The Canadian dollar was down about 1.5 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.01 per cent to 106.28.
The euro dropped 0.05 per cent to US$1.0594. The British pound slid 0.22 per cent to US$1.2647.
In bonds, the yield on the U.S. 10-year note was last down at 4.363 per cent.
Other corporate news
Walmart has raised its annual sales and profit forecast for the third consecutive time, with people buying more groceries and merchandise online and at its stores, a sign that it may be gaining market share ahead of the holiday season.
George Weston Ltd. has reported a third-quarter profit attributable to common shareholders of $15-million compared with a profit of $610-million in the same quarter a year ago as it was hit by a large one-time charge.
Home improvement retailer Lowe’s Cos. has forecast a slower-than-expected drop in annual comparable sales, banking on a boost to its current-quarter sales from hurricane-related demand, although big-ticket spending was strained.
Economic news
Euro zone CPI
(8:30 a.m. ET) Canadian CPI for October, with the annual inflation rate rising to 2 per cent. The median estimate was 1.9 per cent, although many analysts had predicted an uptick to 2 per cent.
(8:30 a.m. ET) Canada’s household and mortgage credit for September.
(8:30 a.m. ET) U.S. housing starts for October. Consensus is an annualized rate decline of 1.4 per cent.
(8:30 a.m. ET) U.S. building permits for October. Consensus is an annualized rate rise of 1.2 per cent.
With Reuters and The Canadian Press