Stock futures suggest a flat start when the TSX reopens this morning after the Canada Day long weekend. U.S. and Canadian stock futures were up by nearly half a percentage point earlier this morning, but have since retreated.
The loonie is sinking, hitting its lowest level in nearly two years.
On Monday, the S&P 500 rose 0.5 per cent after data showed U.S. manufacturing expanded in June while Japanese and European data suggested a modest pickup in their economies. Interlisted stocks on the TSX will be playing a bit of catch up today.
Overseas markets are mixed. European stocks are lower, as investors there cash in on gains from Monday. Greece is again in the headlines, as Reuters reported that the debt-stricken nation has three days to reassure Europe and the International Monetary Fund that it can deliver on conditions attached to its international bailout - or face the possibility of suspension of aid.
Stocks in Shanghai posted modest gains, as China's overnight money-market rate fell to a one-month low, further easing concerns about a credit crunch that could curb growth in Asia's most important economy.
With U.S. markets closed Thursday for the fourth of July holiday and the big event not until Friday when the U.S. non-farm payrolls report is released, the next couple of days may see mostly rangebound trading. The employment report will be key in providing further clues on how soon the U.S. Federal Reserve will taper its bond purchases - the dominant concern at global trading desks right now. A couple of Fed voting members will be speaking later today, and they are likely to emphasize that the Fed's timing on such action is dependent on economic data.
Now, here's a closer look at what's going on this morning and what's to come.
MARKETS:
Equities:
Futures: S&P 500 +0.02 per cent; Dow -0.02 per cent; Nasdaq +0.17 per cent; TSX Toronto +0.1 per cent
Hong Kong's Hang Seng -0.69 per cent
Shanghai composite index +0.59 per cent
Japan's Nikkei +1.78 per cent
London's FTSE 100 -0.63 per cent
Germany's DAX -0.90 per cent
France's CAC 40 -0.52 per cent
Commodities:
WTI crude oil (Nymex Aug) +0.23 per cent at $98.22 (U.S.) a barrel
Gold (Comex Aug) +0.25 per cent at $1,258.80 (U.S.) an ounce
Silver (Comex Sep) +0.24 per cent at $19.63 (U.S.) an ounce.
Copper (Comex Sep) -0.44 per cent at $3.14 (U.S.) a pound
Currencies:
Canadian dollar down 0.0066, or 0.69 per cent, at $0.9464 (U.S.)
U.S. dollar index up 0.12 at 83.18
Bonds:
U.S. 10-year Treasury yield 2.49 per cent, up 0.01
Canada 10-year government bond yield 2.44 per cent, unchanged
ECONOMIC INDICATORS TO WATCH:
(10 a.m. ET) U.S. releases factory orders for May, projected to rise 2 per cent from April after a 1 per cent rise the previous month.
STOCKS TO WATCH:
Zynga Inc. shares are up 4 per cent in the premarket after late Monday naming Don Mattrick, the head of Microsoft's Xbox business, as its chief executive.
Pfizer Inc and Novartis AG may make preliminary bids for Onyx Pharmaceuticals Inc., Reuters is quoting sources as saying. On Sunday, Onyx turned down a roughly $10-billion (U.S.) offer from Amgen Inc. Onyx shares are up nearly 1 per cent in the premarket.
Earnings today include: Constellation Brands Inc. and Labrador Iron Mines Holdings Ltd.
North American auto manufacturers to release their June sales.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
Investors who poured $1.26 trillion into bond funds in the past six years pulled out record amounts of cash last month, leaving the world's biggest fixed-income managers struggling to stem the flow.
U.S. dividends grew at a very brisk pace in the second quarter.
Why you should keep the number of actively managed funds in your portfolio to a minimum.
A counter-trend rally in gold may be over due.
Why bond yields shouldn't keep climbing.
This new ETF is betting there's money to be made through forensic accounting.
Those alarming predictions on sequestration were largely wrong.
Three good interviews on stocks and their relationship to rising interest rates.
It's not wise to press your investing bets in the summer.
-----
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. You can also be notified using our dashboard feature when new articles appear from this author. Read more on using this feature here.
Darcy Keith