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Equities

Canada’s main stock index opened higher Monday, help by positive earnings from miner Barrick Gold. On Wall Street, key indexes were also up in early going as traders await a midweek reading on U.S. inflation.

At 9:32 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 54.7 points, or 0.28 per cent, at 19,674.83.

In the U.S., the Dow Jones Industrial Average rose 73.89 points, or 0.23 per cent, at the open to 32,877.36.

The S&P 500 opened higher by 10.74 points, or 0.26 per cent, at 4,155.93, while the Nasdaq Composite gained 46.17 points, or 0.36 pre cent, to 12,703.72 at the opening bell.

“Sentiment will mostly depend on this week’s [U.S.] inflation data,” Swissquote senior analyst Ipek Ozkardeskaya said in a note.

“If U.S. inflation starts easing, the Fed could rethink about smaller rate hikes, which could give another positive swing to the stocks. Therefore, inflation data is, again, key. Analysts expect that the U.S. inflation may have slowed to 8.7 per cent in July from 9.1 per cent printed a month earlier. It’s possible given that the oil prices eased around 15 per cent last month.”

Right now, she said, markets have given about a 70-per-cent chance that the Fed will again raise rates by 75 basis points at its September meeting.

In this country, earnings continue to roll in.

Early Monday, Barrick Gold Corp. said second-quarter profit jumped roughly 19 per cent, helped by higher copper output. Net earnings rose to US$488-million, or 27 US cents a share, for the quarter ended June 30, compared from $411-million, or 23 cents a share, a year earlier. Barrick shares were up more than 3 per cent in early trading in Toronto.

Later in the week, investors will get quarterly results from Brookfield Asset Management, Metro Inc. and Cineplex.

On Wall Street, shares of Nvidia Corp were under pressure after the company said it expects second-quarter revenue of about US$6.70-billion, down 19 per cent from the prior quarter, largely hurt by weakness in its gaming business. The company is scheduled to report second-quarter results on Aug. 24. Shares were down about 5 per cent shortly after the opening bell.

Overseas, the pan-European STOXX 600 rose 0.95 per cent by midday. Britain’s FTSE 100 gained 0.64 per cent. Germany’s DAX and France’s CAC 40 advanced 1.06 per cent and 1.03 per cent, respectively.

In Asia, Japan’s Nikkei finished up 0.26 per cent. Hong Kong’s Hang Seng slid 0.77 per cent, weighed down by tech stocks.

Commodities

Crude prices fell in early morning trading, holding near recent lows, with economic concerns clouding the demand outlook.

The day range on Brent is US$93.74 to US$96.10. The range on West Texas Intermediate is US$87.86 to US$90.17.

“The [U.S.] jobs report highlighted how strong the economy remains although traders are now increasingly nervous about more aggressive tightening sending the economy into a deeper recession further down the road,” OANDA senior analyst Craig Erlam said. “It really is a lose-lose.”

He also said the resumption of the Iran nuclear talks today could also present a downside risk for crude prices, given that country’s ability to ramp up production if an agreement is reached ‘not to mention its reportedly large oil and gas reserves.”

“A deal could apparently be struck within days although we have heard that a lot at times this year,” Mr. Erlam said.

In other commodities, gold prices were little changed.

Spot gold was steady at US$1,774.80 per ounce, by early Monday morning, after dropping 1 per cent in the previous session. U.S. gold futures eased 0.1 per cent to US$1,790.40.

“Gold is flat today after Friday’s jobs report took the wind out of its sails,” Mr. Erlam said.

“The recovery trade was being fueled by the belief that data-dependency meant a slower pace of tightening but that’s now clearly not the case (nor was it ever, in fairness).”

Currencies

The Canadian dollar edged higher alongside improved risk sentiment while its U.S. counterpart pulled back against a group of world currencies.

The day range on the loonie is 77.21 US cents to 77.59 US cents.

“The CAD has recovered most of the losses seen Friday around the disappointing jobs data here (and the strong report in the U.S.),” Shaun Osborne, chief FX strategist with Scotiabank, said.

“The underlying trend in job growth remains firm and a couple of soft reports will not significantly ease the Bank of Canada’s concern about what it has characterized as a ‘very, very tight’ labour market.”

There were no major Canadian economic releases on Monday’s calendar.

On world market, the U.S. dollar index, which weighs the greenback against a group of world currencies, slid to 106.25 in early European trading, down 0.4 per cent on the day, compared with Friday’s 10-day high of 106.930, according to figures from Reuters.

Elsewhere, the Australian dollar recovered after Friday’s losses. In early going it was up 0.9 per cent on the day at US$0.697. The New Zealand dollar was up 0.4 per cent at US$0.627.

The U.S. dollar fell versus the yen, with the pair changing hands at 134.945, Reuters reported.

In bonds, the benchmark U.S. 10-year note was down at 2.803 per cent in the predawn period.

More company news

Canadian fertilizer giant Nutrien Ltd has named Ken Seitz as chief executive officer, effective Monday. Mr. Seitz has served as interim CEO of the company since January.

Cenovus Energy Inc will buy the remaining 50-per-cent stake in BP-Husky Toledo Refinery in Ohio it does not already own for US$300-million from British energy firm BP PLC, the Canadian company said on Monday. Calgary-based Cenovus has owned 50 per cent of the refinery since its combination with Husky Energy in 2021.

SoftBank Group Corp posted a 2.33 trillion yen (US$17.23-billion) loss at its Vision Fund unit in the April-June quarter as the value of its tech portfolio slid. SoftBank had booked a record loss at the Vision Fund unit in May as market turmoil driven by rising interest rates and political instability hit the tech investor. The group’s sliding portfolio pushed it to a 3.16 trillion yen net loss in the latest quarter. That compared with profit of 761.5 billion yen in the same period a year earlier.

Pfizer Inc said it has agreed to buy blood disorder drugmaker Global Blood Therapeutics in a US$5.4-billion deal, as it looks to fortify its product pipeline.

Australia’s OZ Minerals on Monday rejected a A$8.34-billion ($5.76-billion) unsolicited takeover proposal from global miner BHP Group as undervaluing the gold and copper miner. The A$25 per share conditional and non-binding indicative offer, which OZ said was made on Friday, was at a 32% premium to the stock’s last close. “The board has unanimously determined that the indicative proposal significantly undervalues OZ Minerals and, as such, is not in the best interests of shareholders,” OZ said in a statement.

Economic news

China foreign reserves, trade surplus, yuan financing, new yuan loans and M2 money supply.

With Reuters and The Canadian Press