North American stock markets are gearing up for a rebound after suffering steep losses on Tuesday, as a modest pullback in long-term bond yields and some encouraging European economic data this morning are helping to soothe investors' nerves.
U.S. and Canadian stock futures suggest a rise of around half a percentage point in the major indexes when markets open this morning, and commodities are generally gaining a bit of ground.
Global markets have become addicted to central bank stimulus programs, and the hints dropped by Federal Reserve Chairman Ben Bernanke last month that its bond-buying program could be scaled back in coming months have undermined confidence in global markets ever since.
But today, calmer conditions prevail, and some bargain hunters are sniffing around. Japan's Nikkei, which has had more than its fair share of volatility of late, ended with only a slight loss today amid some welcomed softening in the yen against the greenback.
Industrial production data for the euro zone surprised market participants this morning as it rose by 0.4 per cent in April. Economists had expected a 0.2 per cent fall. Another report also showed the unemployment rate in the U.K. falling slightly.
There isn't much in the way of U.S. economic data or speeches today, so trading could be less volatile than in previous sessions this week.
Now, here's the detailed rundown of markets this morning and what's to come.
Futures: S&P Toronto +0.59 per cent; S&P 500 +0.55 per cent; Dow +0.49 per cent; Nasdaq +0.45 per cent
Hong Kong's Hang Seng Closed for holiday
Shanghai composite index Closed for holiday
Japan's Nikkei -0.21 per cent
London’s FTSE 100 +0.16 per cent
Germany’s DAX +0.13 per cent
France's CAC 40 +0.51 per cent
Italy's FTSE MIB +0.18 per cent
WTI crude oil (Nymex July) +0.12 per cent at $95.49 (U.S.) a barrel
Gold (Comex Aug) -0.03 per cent at $1,376.60 (U.S.) an ounce
Copper (Comex July) +0.55 per cent at $3.21 (U.S.) a pound
Canadian dollar up 0.0010, or 0.10 per cent, at $0.9823 (U.S.)
U.S. 10-year Treasury yield 2.19 per cent, down 0.02
Canada 10-year government bond yield 2.18 per cent, down 0.03
ECONOMIC INDICATORS TO WATCH:
No major reports scheduled.
STOCKS TO WATCH:
Dollarama Inc. reported a 10.7 per cent rise in net profit in its latest quarter as sales rose 12.6 per cent.
Hudson's Bay Co. reported an $80.7-million loss in its latest quarter, down from $129.7-million a year earlier, as retail sales rose 4.2 per cent.
Other earnings today include H&R Block Inc. and ADF Group Inc.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
What investors should really fear - and what they shouldn't.
Investors are running from bonds - but it may not last.
High-yield bond ETF short interest has suddenly rocketed.
Pimco, the world’s largest active bond manager, says investors should cut risk amid a more than 60 per cent chance of a global recession in the next three to five years.
David Rosenberg on how, in a fascinating reversal, equities are being sought for income and bonds for capital gains.
Shares of discount brokers are gaining the most since 2003 compared with the Standard & Poor’s 500 Index, a sign that small investors are joining the four-year bull market even after U.S. stocks suffered their biggest losses in six months.
Be cautious about buying a REIT index fund right now.
5 reasons gold stocks will keep suffering.
Higher mortgage rates aren't affecting the U.S. housing market - so far.
The premarket report is constantly updated to reflect the latest news developments and market moves. For instant headlines on breaking economic and corporate news in the premarket, follow Darcy Keith on Twitter at @eyeonequities.