The Before the Bell report is updated throughout the premarket to reflect the latest news developments and market moves. Check back later for updates. For the latest data on overseas markets, commodities and much more, click here for our market data page.
U.S. and Canadian stocks are setting up for hefty losses at the open, coming under pressure from another selloff in global bond markets, which has investors across asset classes shunning risk.
Dow and S&P 500 futures are both down 0.6 per cent, and futures for the TSX are also deep in the red.
Ten-year U.S. Treasury yields, the benchmark for global borrowing costs, hit their highest since early December, while German 10-year yields added 8 basis points to 0.67 per cent. Elevated yields mean higher corporate borrowing costs, which could hit shares across the world.
MSCI's main gauge of Asia-Pacific shares outside Japan fell 0.4 per cent. Chinese shares, however, maintained momentum after the central bank's weekend cut in interest rates.
Stock specific news this morning is dominated by a major deal in the technology sector: Verizon Communications has agreed to acquire AOL for $50 a share in cash, in a deal valued at $4.48-billion (U.S.). The deal is expected to close this summer and the acquisition will give Verizon an entry into the increasingly competitive online video space. Shares of AOL have surged 18 per cent in the premarket. Verizon shares are down 1.3 per cent.
Meanwhile, there are several Canadian earnings reports out today. Among them are Encana and Air Canada - both of which have easily surpassed analysts' expectations.
The economic calendar, however, is much quieter, with no key reports scheduled in both this country and in the U.S.
Crude oil is having a strong morning. U.S. futures prices are up more than 1.5 per cent, finding strength from unrest in Yemen and a weaker U.S. dollar. Traders are largely casting aside worries created by Saudi Arabia reporting strong production for April and a downbeat Goldman Sachs report. The Wall Street giant warned that the recent price rally is likely to prevent a reduction of oversupply and would therefore lead to lower prices going forward.
Now, here's a closer look at what's happening this morning and what is still to come.
Futures:
S&P 500 -0.6 per cent; Dow -0.6 per cent; Nasdaq -0.8 per cent
Equities:
Hong Kong's Hang Seng -1.12 per cent
Shanghai composite index +1.56 per cent
Japan's Nikkei +0.02 per cent
London's FTSE 100 -1.70 per cent
Germany's DAX -2.08 per cent
France's CAC 40 -1.67 per cent
Stoxx 600 -1.58 per cent
Commodities:
WTI crude oil (Nymex Jun) +1.53 per cent at $61.21 (U.S.) a barrel
Gold (Comex Jun) +0.85 per cent at $1,193.20 (U.S.) an ounce
Copper (Comex Jul) +1.14 per cent at $2.94 (U.S.) a pound
Currencies:
Canadian dollar at 83.14 (U.S.), up 0.0046
U.S. dollar index -0.65 at 94.35
Bonds:
U.S. 10-year Treasury yield 2.33 per cent, +0.04
ECONOMIC DATA:
No major reports scheduled.
STOCKS TO WATCH:
Verizon Communications has agreed to acquire AOL for $50 a share in cash, in a deal valued at $4.48-billion (U.S.). The deal is expected to close this summer. Shares of AOL have surged 18 per cent in the premarket. Verizon shares are down 1.3 per cent.
Casino New Brunswick is being sold for $95-million (Canadian) to Great Canadian Gaming Corp. of Vancouver.
Hilton shares fall 6 per cent in premarket trading after Blackstone cut its stake below 50 per cent in the hotel operator.
Air Canada reported adjusted profit of 41 cents (Canadian) in its latest quarter, far above the 18 cents that analysts expected.
Encana Corp. said its operating earnings amounted to 1 cent per share in its latest quarter, down from 70 cents, but better than Street expectations that called for an operating loss of 9 cents per share.
TMX Group late Monday reported adjusted earnings of 91 cents (Canadian), missing the Street view of 97 cents.
Other earnings today include: Aecom; Ag Growth International Inc; AgJunction Inc; AGT Food and Ingredients Inc; Alterra Power Corp.; Athabasca Oil Corp; Bioteq Environmental Technologies Inc; Birchcliff Energy Ltd; Bonterra Energy Corp; CT REIT; Diversified Royalty Corp; Equitable Group Inc; Exchange Income Corp; Gabriel Resources Ltd; GWR Global Water Resources Corp; High Liner Foods Inc; IBI Group Inc; Ivanhoe Mines Ltd; Lucara Diamond Corp; Mandalay Resources Corp; Orbit Garant Drilling Inc; ORIX Corp.; Partners REIT; Pretium Resources Inc; Rona Inc; Sprott Resource Corp; St Andrew Goldfields Ltd; Student Transportation Inc; SunOpta Inc; Transition Therapeutics Inc; Trican Well Service Ltd; Valeura Energy Inc; WSP Global Inc
OTHER MARKET EVENTS:
(1245 p.m. ET) San Francisco Federal Reserve Bank President John Williams speaks on the economic outlook in New York.
(2 p.m. ET) U.S. budget surplus for April. Estimate is $138-billion (U.S.), an increase of $31.1-billion from April of 2014.
With files from wire services
Darcy Keith