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The Before the Bell report is compiled by editors of The Globe and Mail and is updated throughout the morning to reflect latest developments. Colin Cieszynski will return.
Financial markets showed signs of resilience following a failed coup attempt in Turkey, with the lira leading a recovery in developing-nation currencies and North American equity-index futures gaining ground. Haven assets including the yen, gold and Treasuries fell.
The lira clawed back almost half of its losses from Friday, when news that army officers had tried to seize power triggered the currency's steepest slide since 2008. Futures signaled U.S. and Canadian stocks will open with modest gains, while ARM Holdings Plc led technology shares higher in Europe after SoftBank Group Corp. agreed to buy the chip designer for 24.3 billion pounds ($32 billion).
"The broader financial market impact should prove fleeting although it will leave a more lasting impact in Turkey," Lee Hardman, a currency analyst at Bank of Tokyo-Mitsubishi UFJ in London, wrote in a note. "The lira has suffered two sharp sell offs so far this year and both have been driven by negative political domestic developments."
Before the putsch jolted markets on Friday, U.S. stocks had closed at record highs four days in a row. Global equities had recovered from the selloff triggered by the U.K.'s June 23 referendum to leave the European Union as policy makers signaled they will take steps to limit fallout from the vote and the U.S. economy outperformed projections.
S&P 500 Index futures expiring in September added 0.2 per cent as of about 7 a.m. (ET), after the gauge advanced for a third week as managers upped their stock market exposure to 97 per cent, the highest in history. Bank of America Corp., Yahoo! Inc. and Netflix Inc. are among companies reporting earnings today.
A gauge of technology shares in the Stoxx Europe 600 Index jumped 3.5 per cent. ARM surged 43 per cent to a record. Peers Dialog Semiconductor Plc and Ams AG added more than 3.6 per cent.
Turkey's Borsa Istanbul 100 Index sank 5 percent and Turkish Airlines tumbled as much as 6.5 percent. The country's equity market was closed when the coup erupted. President Recep Tayyip Erdogan ordered reprisals after attempted takeover led to the deaths of more than 190 civilians and so far more than 6,000 people, including members of the judiciary, have been detained.
Hermes Asset Management is among investors seeing potential for a relief rally in Turkish assets even amid longer-term concern about the country's political and economic situation. Rabobank and CrossBorder are predicting outflows from the country. The nation's deputy prime minister posted on Twitter that there's "no need to worry."
Malaysia Airports Holdings Bhd., owner of Istanbul's second-biggest airport, tumbled 5 per cent on concern fewer people will visit Turkey following the attempted coup.
The lira jumped 1.9 percent, after sliding 4.6 percent on Friday. The South African rand climbed 1.7 percent, having dropped 2.4 percent in the last session as news of Turkey's coup attempt hit emerging-market assets. Mexico's peso rose 0.7 percent.
The yen fell 0.8 percent after gaining 0.5 percent late Friday. Still, the currency ended last week down 4.1 percent week as Prime Minister Shinzo Abe outlined plans for a "bold" stimulus package in the wake of an election victory.
The pound gained 0.5 percent to $1.3256, extended last week's advance, after the deal announcement for ARM and after Bank of England policymaker Martin Weale said "firmer evidence" was needed on the impact of the U.K. leaving the EU before the bank changes policy.
The Bloomberg Dollar Spot Index was little changed, as was the Canadian dollar.
Crude oil was little changed at $45.94 a barrel in New York following the failed coup in Turkey last week as shipments continued through the vital conduit for oil from Russia and Iraq to the Mediterranean Sea. It gained 0.6 percent in the last session as news broke of the coup attempt in Turkey, a vital conduit for oil passing from Russia and Iraq to the Mediterranean Sea.
Gold declined 0.6 percent to about $1,326 an ounce, trimming this year's advance to 25 percent. The metal is in a major bull market and may surge to more than $1,500 as low interest rates buoy demand and the U.S. presidential election looms, according to DBS Group Holdings Ltd.
Copper fell 0.4 percent in London, extending Friday's retreat from the highest level since April, leading most industrial metals lower in London amid speculation that credit conditions in China will be less supportive of demand this half.
Now, here is a closer look at what's going on this morning and what is still to come.
MARKET DATA: (as of about 7 a.m. ET)
Futures
Dow +0.14 per cent; S&P 500 +0.19 per cent; Nasdaq: +0.10 per cent; TSX 60: +0.11 per cent
Equities
Japan's Nikkei +0.68 per cent
Shanghai composite index -0.34 per cent
Hong Kong's Hang Seng +0.66 per cent
Germany's DAX -0.02 per cent
London's FTSE +0.33 per cent
France's CAC 40 -0.23 per cent
Commodities
WTI crude oil (Nymex Aug) -0.52 per cent at $45.71 (U.S.) a barrel
Gold (Comex Aug) -0.09 per cent at $1,326.20 (U.S.) an ounce
Copper (Comex July) -1.14 per cent at $2.208 (U.S.) a pound
Currencies
Canadian dollar +0.08 at 77.19 cents (U.S.)
U.S. dollar index +0.03 at 96.60
Bonds
Canada 10-year bond yield +0.010 at 1.093 per cent
KEY ECONOMIC RELEASES
(10 a.m. ET) The U.S. reports its NAHB housing market index.
KEY STOCKS TO WATCH
British chip designer ARM's U.S.-listed shares surged 43 per cent to $67.30 premarket, after Japan's SoftBank agreed to buy the company for $32.2 billion.
Bank of America Corp., the second-biggest U.S. bank by assets, said second-quarter profit fell 21 per cent as the firm took an accounting charge and posted a decline in wealth-management revenue. Net income dropped to $4.23 billion, or 36 cents a share, from $5.13 billion, or 43 cents, a year earlier. The average estimate of analysts surveyed by Bloomberg was for earnings per-share of 33 cents. Shares are up 0.6 per cent in the premarket.
Toymaker Hasbro Inc reported higher-than-expected quarterly profit and revenue on Monday, driven by strong demand for its Disney Princess and Frozen dolls and its action figures based on "Star Wars" movies. The net income attributable to Hasbro rose 24.6 percent to $52.1 million, or 41 cents per share, in the quarter ended June 26. Net revenue jumped more than 10 percent to $878.9 million. Analysts on average had expected a profit of 39 cents per share and revenue of $859 million, according to Thomson Reuters I/B/E/S. Shares are down 0.5 per cent in the premarket.
Other earnings include: Charles Schwab; EMC Corp; IBM; J B Hunt Transport; Lennox; Netflix Inc; Yahoo! Inc.
With files from Bloomberg and other wire services