Equities
Global markets were mixed after U.S. price data added to bets on a Federal Reserve rate cut next month, though the future monetary policy outlook was clouded by Donald Trump’s return to the White House.
Wall Street’s main indexes edged higher at the open after a broadly in line reading of producer prices data, with investors awaiting Fed chair Jerome Powell’s comments later in the day for clues on the outlook for interest rates.
The Dow Jones Industrial Average rose 0.17 per cent to 44,032.38., the S&P 500 gained 0.07 per cent to 5,989.68, and the Nasdaq Composite advanced 0.13 per cent to 19,256.09 at the bell.
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.54 per cent higher at 24,124.02, buoyed by energy stocks.
In Canada, investors are getting results from Atco Ltd., Boralex Inc. and Brookfield Corp.
On Wall Street, markets are watching earnings from Applied Materials Inc. and Walt Disney Co.
“Even though we’re not optimistic Trump’s policies will be a big boost to growth, they will increase indebtedness and boost inflation and that could change the Fed’s plans,” said Nordea chief analyst Jan von Gerich said.
Overseas, the pan-European STOXX 600 was up 0.96 per cent in morning trading. Britain’s FTSE 100 rose 0.53 per cent, Germany’s DAX gained 1.46 per cent and France’s CAC 40 advanced 1.12 per cent.
In Asia, Japan’s Nikkei closed 0.48 per cent lower, while Hong Kong’s Hang Seng slid 1.98 per cent.
Commodities
Oil prices were largely steady, with traders holding fire after declines earlier this week on a stronger U.S. dollar and worries about rising supply amid slow demand growth.
Brent crude futures were up 0.5 per cent to US$72.65 a barrel. West Texas Intermediate crude (WTI) futures rose 0.5 per cent to US$68.77.
“The primary driver of oil prices, both in the near term and looking ahead, will be the direction of the U.S. dollar,” said Phillip Nova’s investment analyst Danish Lim.
In other commodities, spot gold dropped 0.8 per cent to US$2,537. U.S. gold futures fell about 1 per cent to US$2,560.90.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 71.31 US cents to 71.50 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, gained 0.39 per cent to 106.89.
The euro fell 0.32 per cent to US$1.0531. The British pound dropped 0.37 per cent to US$1.2662.
In bonds, the yield on the U.S. 10-year note was last up at 4.471 per cent.
Other corporate news
Shale producer Ovintiv has announced a US$2.38-billion all-cash acquisition of oil assets from Paramount Resources, expanding its presence in Canada’s Montney shale play.
Investment firm Brookfield Corp. has reported its third-quarter distributable earnings totalled US$1.33-billion, up from $1.15-billion in the same quarter a year ago.
AtkinsRealis Group Inc., formerly known as SNC-Lavalin, has reported its third-quarter profit edged lower compared with a year ago when it benefited from a gain on the sale of its Scandinavian engineering services business.
Walt Disney has recorded earnings that topped Wall Street’s estimates, propelled by blockbuster ticket sales from Deadpool & Wolverine, and provided an upbeat forecast for the coming year.
Economic news
Euro zone real GDP and industrial production, which dropped a more-than-expected 2 per cent in September with Germany suffering the biggest fall among the bloc’s largest nations, indicating than a long-expected recovery could be even further delayed.
(8:30 a.m. ET) U.S. initial jobless claims for week of Nov. 9, which fell 4,000 to a seasonally adjusted 217,000, suggesting the labour market continued to chug along. Estimate had been 224,000, up 3,000 from the previous week.
(8:30 a.m. ET) U.S. PPI Final demand. Wholesale prices rose in October, remaining low but suggesting that the American economy has yet to completely vanquish inflationary pressure. PPI increased 0.2 per cent from September, as expected, and 2.4 per cent year-over-year, hotter than the 2.2 per cent forecast.
(3 p.m. ET) U.S. Fed chair Jerome Powell speaks on the economic outlook.
With Reuters and The Canadian Press