Equities
Global markets eased as investors eye U.S. jobs numbers amid a slew of economic data this week.
Canada’s main stock index was down at the open, dragged by losses in energy and materials shares as oil and copper prices fell. The S&P/TSX composite index declined 0.55 per cent at 21,995.05.
Wall Street’s main indexes opened lower as concern grew about the health of the world’s largest economy, even as investors eyed key economic data due this week for clues on how much growth has slowed.
At the open, the Dow Jones Industrial Average fell 0.14 per cent to 38,518.86, the S&P 500 slid 0.10 per cent to 5,278.24, while the Nasdaq Composite dropped 0.03 per cent to 16,823.88.
In Canada, investors will be watching Shopify’s annual general meeting this morning, with shareholders voting on whether to approve the e-commerce giant’s compensation plan for executives.
On Wall Street, markets are getting results from Hewlett Packard Enterprise Co. and Bath & Body Works.
The strength of the U.S. labour market will be closely watched with the Job Openings and Labor Turnover Survey (JOLTS) for April due later today and non-farm payroll figures for May out on Friday.
“We’re expecting a slight easing in demand for labour in the U.S. market,” said Raisah Rasid, JPMorgan Asset Management’s global market strategist.
“What does that mean for the Fed? I think all data points to one interest rate cut later in the year, potentially in December. If the data moves quicker than expected that cut could be moved forward to September.”
Tuesday’s analyst upgrades and downgrades
Overseas, the pan-European STOXX 600 was 0.72 per cent lower in morning trading. Britain’s FTSE 100 was down 0.55 per cent, Germany’s DAX slid 1.15 per cent and France’s CAC 40 gave back 0.85 per cent.
In Asia, Japan’s Nikkei closed down 0.22 per cent at 38,837.46, while Hong Kong’s Hang Seng rose 0.22 per cent to 18,444.11.
Commodities
Oil prices fell more than US$1 on skepticism about an OPEC+ decision to boost supply later this year into a global market where demand has already shown signs of weakness.
Brent crude futures fell 1.4 per cent to $77.25 a barrel after closing below US$80 yesterday for the first time since Feb. 7. West Texas Intermediate (WTI) crude futures eased 1.5 per cent to US$73.13 a barrel after settling yesterday near a four-month low.
In other commodities, gold was slightly lower, falling 0.6 per cent to US$2,335 an ounce.
Currencies and bonds
The Canadian dollar weakened against the greenback, which skimmed its lowest in over two months against the euro and the British pound.
The day range on the loonie was 72.99 US cents to 73.42 US cents in the early premarket period. The Canadian dollar was up about 0.35 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.27 per cent to 104.32.
The euro was down 0.4 per cent at US$1.0863, having gained 0.65 per cent in a month. The British pound hit its highest since mid-March but was last down 0.5 per cent at US$1.2743.
In bonds, the yield on the U.S. 10-year note was lower at 4.385 per cent ahead of the North American opening bell.
Other corporate news
Bath & Body Works has forecast full-year profit largely below market estimates and said it expects annual sales to drop, signalling demand for its body care products would remain subdued amid sticky inflation. Its shares fell 8.8 per cent in premarket trading as it also expects second-quarter profit below estimates.
Economic news
(10 a.m. ET) U.S. Job Openings and Labor Turnover Survey for April.
(10 a.m. ET) U.S. factory orders for April. Consensus is a rise of 0.6 per cent from March.
With Reuters and The Canadian Press