Equities
Global markets were mixed in cautious trading as investors assessed key U.S. inflation data.
Wall Street’s main indexes were steady after in-line reading of the consumer price index kept the Federal Reserve on track to cut interest rates in December.
The Dow Jones Industrial Average fell 0.07 per cent to 43,880.46, the S&P 500 rose or 0.03 per cent to 5,985.75, and the Nasdaq Composite rose 0.03 per cent to 19,286.456 at the bell.
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.17 per cent higher at 24,965.77, buoyed by energy shares.
In Canada, investors are getting results from Loblaw Cos. Inc., Maple Leaf Foods Inc., Northland Power Inc. and HudBay Minerals Inc.
Loblaw has reported growth in sales and profits in its third quarter, as shoppers weary of high food prices continue to visit its discount stores more often. But the grocer missed analysts’ revenue estimates.
On Wall Street, markets are watching earnings from Cisco Systems Inc.
“The in-line number is allowing the market to breathe a little easier and to focus more on the positives of less regulation, a potential increase in business,” Robert Pavlik, senior portfolio manager at Dakota Wealth, said.
“Right now, we’re on the glide path to another rate cut. It could get disrupted but right now it looks like we could get another rate cut,” he said.
Overseas, the pan-European STOXX 600 was down 0.25 per cent in morning trading. Britain’s FTSE 100 was little changed, Germany’s DAX gave back 0.21 per cent and France’s CAC 40 declined 0.29 per cent.
In Asia, Japan’s Nikkei closed 1.66 per cent lower, while Hong Kong’s Hang Seng slipped 0.12 per cent.
Commodities
Oil prices held near their lowest in two weeks a day after OPEC downgraded its forecast for global oil demand growth in 2024 and 2025 and amid demand concerns in China.
Brent futures rose 0.68 per cent to US$72.38 a barrel, while West Texas Intermediate (WTI) crude futures gained 0.7 per cent to US$68.60.
“Crude oil prices edged higher as tightness in the physical market offset bearish sentiment on demand. Buyers in the physical market have been particularly active, with any available cargoes being snapped up quickly,” ANZ analysts said in a note.
In other commodities, gold rose 0.3 per cent to about US$2,605 an ounce, following its slump to a nearly two-month low of US$2,589.59 yesterday, pressured by U.S. dollar strength.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 71.61 US cents to 71.77 US cents in early trading. The Canadian dollar was down about 1.48 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, slid 0.15 per cent to 105.87, as the greenback traded at six month highs.
The euro rose 0.06 per cent to US$1.0630. The British pound was little changed at US$1.2748.
In bonds, the yield on the U.S. 10-year note was last down at 4.373 per cent ahead.
Other corporate news
Japan’s Seven & i Holdings is weighing a takeover offer from a member of its founding Ito family, a white-knight bid that could thwart efforts by Canada’s Alimentation Couche-Tard Inc. to buy the 7-Eleven chain.
A special committee of Seven & i directors is reviewing options including Couche-Tard’s offer as well as a non-binding and confidential proposal received from Junro Ito, a Seven & i vice-president and director, the Japanese company said in a statement.
Economic news
(8:30 a.m. ET) U.S. CPI for October, which increased as expected to 0.2 per cent month-over-month and 2.6 per cent year-over-year.
(2 p.m. ET) U.S. budget balance for October.
With Reuters and The Canadian Press