Equities
Trading on global markets was muted Monday with U.S. and British markets closed for public holidays as investors take a cautious stance ahead of key inflation data from the United States and Europe later this week.
The S&P/TSX Composite Index was up 0.18 per cent at 22,361.11 at the open, supported by a rise in energy and materials shares.
The April reading of the U.S. core PCE price index, the Federal Reserve’s preferred gauge for inlation, is set for release on Friday. Consensus is a rise of 0.3 per cent from March and up 2.8 per cent from the same period a year ago.
“While last week began on optimism that inflation could allow the Fed to cut rates as early as in September, this week begins on pessimism that the latter will probably not be possible,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank in a note.
Figures for inflation in the euro zone are also due on Friday and expected tick up to 2.5 per cent.
Monday’s analyst upgrades and downgrades
Overseas, the pan-European STOXX 600 inched 0.13 per cent higher in morning trading. Germany’s DAX rose 0.27 per cent while France’s CAC 40 advanced 0.22 per cent.
In Asia, Japan’s Nikkei closed 0.66 per cent higher at 38,900.02, while Hong Kong’s Hang Seng gained 1.17 per cent to 18,827.35.
Commodities
Oil prices made marginal advances as markets awaited an OPEC+ meeting on June 2 during which producers are expected to discuss maintaining voluntary output cuts for the rest of the year.
The Brent crude July contract was up 56 US cents to US$82.68 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 58 cents to $78.30 per barrel.
Gold prices drifted higher from a two-week low hit in the previous session as traders gauged fading hopes of U.S. interest rate. Spot gold was up 0.5 per cent at US$2,344.88 per ounce, having touched its lowest since May 9 at US$2,325.19 on Friday.
Currencies and bonds
The U.S. dollar held steady on thinner than usual trading, while the loonie strengthened against the greenback.
The day range on the Canadian dollar was 73.13 US cents to 73.25 US cents in the early premarket period. It was up 0.03 per cent against the U.S. dollar over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, was last down modestly to 104.72.
The euro, which gained 0.9 per cent on the U.S. dollar last week, was in the middle of a range it has held for more than a year at US$1.085. Britain’s pound was testing the top side of a range it has held this year at US$1.2735.
In bonds, the yield on the U.S. 10-year note was unchanged at 4.47 per cent.
Rob Carrick: Investors are starting to bail on high-interest savings ETFs, and it’s the right move
Corporate news
Indigo Books & Music Inc. shareholders are expected to vote this morning on whether the retailer should accept a sweetened offer from a holding company that plans to take the bookstore chain private.
Elon Musk’s AI startup xAI has raised US$6-billion in series B funding, reaching a post-money valuation of US$24-billion as investors bet big on challengers to companies like OpenAI in the intensifying AI race.
A&W Food Services of Canada Inc. has signed a long-term development agreement with sandwich chain Pret A Manger (Europe) Ltd. following a two-year trial period. A&W says it will introduce Pret’s products in a variety of formats, starting with a national roll out of Pret coffee in A&W restaurants this fall.
Economic news
(8:30 a.m. ET) Canadian wholesale trade for April.
Canadian markets open at 9:30 a.m. ET.
With Reuters and The Canadian Press