Equities
Global markets climbed as traders eyed a possible easing in trade tensions between the U.S. and China and nerves over credit risks in the banking sector ebbed.
Wall Street futures were in positive territory on the heels of a broad rally sent all three major U.S. stock indexes to a sharply higher close yesterday.
TSX futures pointed lower as markets assessed inflation figures, which accelerated by more than expected in September to an annualized 2.4 per cent. That’s potentially casting doubt on the Bank of Canada’s interest rate decision next week, economics editor Matt Lundy writes.
How today’s inflation report has shifted market and economist predictions for BoC rate cuts
In Canada, investors are getting results from Waste Connections Inc.
On Wall Street, markets are watching earnings from Netflix Inc., GE Aerospace, Coca-Cola Co., Philip Morris International Inc., Capital One Financial Corp., Lockheed Martin Corp., General Motors Co., 3M Co., Texas Instruments Inc. and Halliburton Co.
“The market has hurdled the wall of worry with ease, with new capital injected into risk and fresh oxygen into the market’s lungs,” said Chris Weston, head of research at Pepperstone.
Overseas, the pan-European STOXX 600 edged up 0.12 per cent in morning trading. Britain’s FTSE 100 gained 0.3 per cent, Germany’s DAX advanced 0.08 per cent and France’s CAC 40 climbed 0.41 per cent.
In Asia, Japan’s Nikkei closed 0.27 per cent higher, while Hong Kong’s Hang Seng advanced 0.67 per cent.
Commodities
Oil prices rose on easing concerns about an oversupplied market and the trade dispute between the U.S. and China
Brent crude futures were up 0.54 per cent to US$61.34 a barrel. West Texas Intermediate crude (WTI) contract for November delivery, set to expire today, rose 0.9 per cent to US$58.06.
“Speculative bets on lower prices are likely to persist as long as Brent remains below US$65,” said Ole Hansen, head of commodity strategy at Saxo Bank.
In other commodities, spot gold was down 2.1 per cent at US$4,264.91 an ounce, having hit an all-time high of US$4,381.21 yesterday. U.S. gold futures for December delivery fell 1.9 per cent to US$4,278.50 an ounce.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 71.08 US cents to 71.35 US cents in early trading. The Canadian dollar was down about 1.37 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.36 per cent to 98.94.
The euro slid 0.33 per cent to US$1.1605. The British pound gave back 0.23 per cent to US$1.3375.
In bonds, the yield on the U.S. 10-year note was last down at 3.970 per cent.
Economic news
Japan machine tool orders
8:30 a.m. ET: Canadian CPI for September, which rose to an annualized 2.4 per cent compared with consensus estimate of 2.2. per cent.
With Reuters and The Canadian Press
