Before the Bell: What every Canadian investor needs to know today
Published 11 hours agoUpdated 7 hours ago
Equities
Global markets were mostly lower as investors assessed fresh corporate earnings reports amid escalating tensions in the Middle East that threatened to fuel energy inflation.
Wall Street futures were mixed as chip stocks extended losses and markets eyed retail sales numbers that were in line with expectations.
TSX futures were in the red after Canada’s main index edged to a fresh record high yesterday.
On Wall Street, markets are watching earnings from Taiwan Semiconductor Manufacturing, Netflix Inc., UnitedHealth Group Inc., GE Aerospace, Abbott Laboratories and U.S. Bancorp.
“In equities, there is still incredible volatility,” Marlborough fund manager James Athey said. “The market is still flailing a bit, for want of a better word, on how to price the AI trade and the extent to that is sustainable.”
Overseas, the pan-European STOXX 600 was down 0.74 per cent. Britain’s FTSE 100 fell 0.5 per cent, Germany’s DAX dropped 1.09 per cent and France’s CAC 40 retreated 0.98 per cent.
In Asia, Japan’s Nikkei closed 2.79 per cent lower, while Hong Kong’s Hang Seng advanced 1.33 per cent, boosted by Alibaba shares.
Commodities
Oil prices climbed as concerns over Middle East energy supplies increased after Iran asked Yemen’s Houthis to stand ready to close the Red Sea oil route.
Brent crude futures were up 1.15 per cent to $85.93 a barrel. West Texas Intermediate futures rose 1.2 per cent to US$80.56 a barrel.
“Simultaneous disruptions affecting Hormuz and Bab el-Mandeb would significantly amplify supply chain stress, increase tanker availability constraints, and raise insurance premiums,” said Wael Makarem, financial markets strategist lead at Exness.
In other commodities, spot gold was down 0.8 per cent to US$4,026.71 an ounce. U.S. gold futures for August delivery lost 0.5 per cent to trade at US$4,0320.00.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 71.14 US cents to 71.33 US cents in early trading. The Canadian dollar was up about 0.84 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.18 per cent to 100.67. The dollar was pegged at $1.4022.
The euro slid 0.08 per cent to US$1.1454. The British pound declined 0.24 per cent to US$1.3506.
In bonds, the yield on the U.S. 10-year note was last up at 4.590 per cent.
Economic news
Euro zone’s trade surplus
8:15 a.m. ET: Canadian housing starts for June, which were down of 2.8 per cent from May.
8:30 a.m. ET: U.S. initial jobless claims for week of July 11. Estimate is 222,000, up 7,000 from the previous week.
8:30 a.m. ET: U.S. retail sales for June, which increased 0.2 per cent from May.
10 a.m. ET: U.S. NAHB Housing Index for July.
10 a.m. ET: U.S. business inventories for May.
10 a.m. ET: U.S. pending home sales for June.
With Reuters and The Canadian Press
