The Before the Bell report is constantly updated to reflect the latest news developments and market moves in the premarket. Check back later for updates.
Stock futures are pointing to a higher start for the major North American indexes this morning, as traders take in the latest economic data from across the globe and keep a nervous eye on the unfolding geopolitical crisis in Ukraine. The TSX will be facing a significant headwind, however, as gold prices are down about 1.5 per cent, under pressure from a stronger U.S. dollar, technical selling, and no major flare-ups on the geopolitical front.
Shortly after markets open today, the U.S. will release a handful of reports on manufacturing and construction spending, which could influence the direction of trading. Also, the major automakers are releasing their sales figures for August.
In Asian markets overnight, the Shanghai and Tokyo markets saw gains of more than 1 per cent, despite the lack of guidance from the U.S. market on Monday, when it was closed for the Labor Day holiday. Japanese stocks got a boost from the yen weakening to a new 2014 low, and the Shanghai composite closed at its highest level since June 2013 with the help of property stocks rising, even as data showed that housing prices fell for the fifth straight month in August.
In Europe, a euro zone producer price index for July fell 0.1 per cent for the month, as forecast, and August construction data for the U.K. showed a better-than-expected rise. But the major focus there is on the European Central Bank, which holds a policy meeting Thursday. There are some suggestions it could announce more stimulus measures, including purchasing more government bonds - although that's far from a certainty at this point.
On the Ukraine front this morning, the country has begun peace talks with pro-Russian separatists, who are giving indications they would be willing to remain part of Ukraine if granted special status. There are also reports that the European Union is working on contingencies if Russia cuts natural gas supplies to the West in retaliation to any new sanctions.
Now, here's a closer look at what's going on this morning and what is still to come.
MARKETS:
Equities:
Futures: S&P 500 +0.18 per cent; Dow +0.21 per cent; Nasdaq +0.26 per cent; S&P/TSX +0.12 per cent
Hong Kong's Hang Seng -0.01 per cent
Shanghai composite index +1.36 per cent
Japan's Nikkei +1.24 per cent
London's FTSE 100 +0.10 per cent
Germany's DAX +0.83 per cent
France's CAC 40 +0.39 per cent
Stoxx 600 +0.33 per cent
Commodities:
WTI crude oil (Nymex Oct) -0.89 per cent at $95.12 (U.S.) a barrel
Gold (Comex Dec) -1.55 per cent at $1,267.40 (U.S.) an ounce
Copper (Comex Dec) -0.28 per cent at $3.15 (U.S.) a pound
Currencies:
Canadian dollar at 91.66 (U.S.), down 0.0028
U.S. dollar index up 0.20 at 82.95
Bonds:
U.S. 10-year Treasury yield 2.39 per cent, up 0.04
ECONOMIC INDICATORS:
Canada and U.S. release auto sales for August.
(945 a.m. ET) U.S. releases Markit Manufacturing PMI for August. This is followed at 10 a.m. (ET) with the manufacturing ISM reading.
(10 a.m. ET) U.S. construction spending for July, forecast to rise 0.8 per cent.
STOCKS TO WATCH:
Norwegian Cruise Line Holdings said it has agreed to buy upscale cruise provider Prestige Cruises International in a cash-and-stock deal valued at $3.03-billion, including debt.
Dollar General raised its offer for smaller rival Family Dollar Stores to $80 (U.S.) a share in cash, up from $78.50.
Pembina Pipeline has struck a deal to build a West Coast propane export terminal in Portland, Oregon, at a cost of about $500-million (U.S.).
Fairfax Financial Holdings Limited will acquire pet health insurer Pethealth Inc. for $2.79 per share in cash, for a total of approximately $100-million, Fairfax announced late Friday.
Compuware jumped 14.4 percent to $10.70 in premarket after the Wall Street Journal reported the company is near a deal to sell itself.
ANALYST ACTIONS:
TD Securities upgraded ATS Automation Tooling Systems to "buy" from "hold" and raised its price target to $16 (Canadian) from $15.
Raymond James raised its price target on Athabasca Oil to $9 (Canadian) from $7.50 and reiterated a "market perform" rating. TD Securities cut its target to $10.50 from $11 and maintained a "buy" rating.
Desjardins Securities raised its price target on SNC-Lavalin Group to $67 (Canadian) from $63 and reiterated a "buy" rating.
BMO Nesbitt Burns raised its price target on Alimentation Couche-Tard to $38 (Canadian) from $32 and reiterated an "outperform" rating.
RBC Dominion Securities hiked its price target on CIBC to $104 (Canadian) from $98 and reiterated a "sector perform" rating.
Stifel Nicolaus upgraded Tesla Motors to "buy" from "hold" with a price target of $400 (U.S.).
RBC Dominion Securities upgraded Groupon to "sector perform" from "underperform" and hiked its price target to $6 (U.S.) from $5.
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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