Another upbeat economic report out of China is buoying investors' spirits across the globe this morning. Markets in Europe and Asia are higher, as are major commodities, pointing to gains for the TSX at the open.
A major rally isn't likely, and volumes will undoubtedly be thinner than usual, given that the highly influential U.S. market is closed for the Thanksgiving holiday.
But there is a positive tone to start the day, largely thanks to the release of Chinese factory figures that further indicate its economy is starting to pick up the pace. HSBC's preliminary manufacturing Purchasing Managers' index rose to 50.4, the first time in 13 months the index came in above 50 points, the threshold that signifies expansion. That suggests China's demand for commodities may be on the rise, good news for Canada's resource sector.
A temporary cease-fire in the Middle East helped to boost market sentiment this morning as well. Israel's benchmark stock index rose 0.6 per cent overnight.
The European debt crisis will continue to be a major point of focus for markets. Leaders there are holding budget talks today and negotiations won't be easy on a proposed 1.033 trillion-euro package. Talks on the seven-year budget for the 27-country European Union pit several wealthy member states against those seeking more aid spending. Nevertheless, Greece's 10-year bond yield this morning fell as much as 65 basis points to 16.1 per cent, the lowest since March, when the country's debt was restructured.
Now, here's what else you need to know before markets open this morning.
MARKETS:
Equities:
U.S. futures: DJIA +0.2 per cent; S&P 500 +0.32 per cent; Nasdaq +0.27 per cent
Hong Kong's Hang Seng index +1.02 per cent
Shanghai composite index -0.71 per cent
Japan's Nikkei +1.57 per cent
London's FTSE 100 +0.54 per cent
Germany's DAX +0.69 per cent
France's CAC 40 +0.28 per cent
Commodities:
WTI (Nymex Jan) +0.08 per cent at $87.45 (U.S.) a barrel
Gold (Comex Dec) +0.10 per cent at $1,730.00 (U.S.) an ounce
Copper (Comex Mar) +0.46 per cent at $3.52 (U.S.) a pound
Currencies:
Canadian dollar down 0.0008, or 0.08 per cent, at 1.0027 (U.S.)
STOCKS AND ECONOMIC INDICATORS TO WATCH:
Statistics Canada said retail sales in September rose only 0.1 per cent from August, below economists' expectations for a 0.5 per cent rise.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
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For instant headlines on breaking economic and corporate news in the premarket, follow Darcy Keith on Twitter at @eyeonequities
Darcy Keith