Equities
Global markets were mixed with investors turning their attention back to the conflict in Iran, after mild U.S. inflation data reinforced expectations that the Federal Reserve will keep rates unchanged next month.
Wall Street futures pointed higher as investors assess PPI numbers. TSX futures were in positive territory.
In Canada, investors are getting results from Canadian Tire Corp. Ltd., Brookfield Corp., Onex Corp. and Telesat Corp.
On Wall Street, markets are watching earnings from Applied Materials Inc.
“Price pressures remain well above the Federal Reserve’s 2-per-cent inflation target – still calling for tighter monetary policy, though the soft-ish looking numbers buy the Fed some time to wait a bit longer,“ Ipek Ozkardeskaya, senior analyst at Swissquote, wrote in a note.
“The idea of a delayed Fed rate hike is giving a fresh boost to equity markets.”
Overseas, the pan-European STOXX 600 was up 0.17 per cent in morning trading. Britain’s FTSE 100 fell 0.28 per cent, Germany’s DAX gained 0.41 per cent and France’s CAC 40 advanced 0.13 per cent.
In Asia, Japan’s Nikkei closed 1.16 per cent higher, while Hong Kong’s Hang Seng slid 0.17 per cent.
Commodities
Oil prices declined as investors assessed prospects for weaker global demand this year and higher U.S. crude stocks, while prices found support from a lack of progress in talks over the blockaded Strait of Hormuz and disruptions to supply.
Brent futures were down 1.7 per cent to US$87.45 a barrel. West Texas Intermediate (WTI) crude fell 2.1 per cent to US$81.60.
In other commodities, spot gold dropped 0.3 per cent to US$4,395.04 an ounce. U.S. gold futures for December delivery fell 0.3 per cent to US$4,452.70.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 71.63 US cents to 71.76 US cents in early trading. The Canadian dollar was up/down about 0.68 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, fell 0.09 per cent to 99.92. The dollar was pegged at $1.3950.
The euro rose 0.08 per cent to US$1.1536. The British pound slipped 0.05 per cent to US$1.3491.
In bonds, the yield on the U.S. 10-year note was last down at 4.675 per cent.
Economic news
China current account surplus
Euro zone industrial production
8:30 a.m. ET: U.S. initial jobless claims for week of Aug. 8. Estimate is 203,000, up 4,000 from the previous week.
8:30 a.m. ET: U.S. PPI for July, which increased 4.7 per cent year over year and were unchanged from June. Consensus was for a rise of 0.2 per cent from June and 4.8 per cent year-over-year.
With Reuters and The Canadian Press
