Colin Cieszynski
The Before the Bell report is compiled by editors of The Globe and Mail and is updated throughout the morning to reflect latest developments. Colin Cieszynski, Chartered Financial Analyst and Chartered Market Technician, is chief market strategist with CMC Markets.
It's U.S. Thankgiving week, a time when markets usually pause for a break with a lot of traders heading home for the holidays, football and shopping. The initial impact of the U.S. election has run its course and traders are now looking ahead to a flurry of economic numbers on Wednesday morning and Black Friday sales reports into next weekend.
Today finds U.S. index futures for the S&P and Nasdaq up 0.2 per cent with Dow futures marginally in the green. The Dow remains just below all-time highs near 19,000 with the S&P sitting just below 2,190. The U.S. Dollar Index has paused to rest and remains vulnerable to potential profit taking ahead of the holiday weekend.
European markets are also trading higher to start the week The FTSE is up 0.5 per cent while the Dax is up 0.4 per cent. Political news has been dominating trading across the pond with the U.K. autumn statement indicating plans to build on current monetary support. Former French president Nicolas Sarkozy lost his party's primary for next year's election to Francois Fillion while German PM Angela Merkl announced her intention to run for a fourth term in office next year. Italy's FTSEMIB is down 0.4 per cent after weekend polls, the final ones before the Dec. 4th constitutional referendum, show the No side with a growing lead which could lead to the resignation of PM Matteo Renzi and another rejection of the establishment. The euro is trading broadly higher today on all of this news with the Bundesbank expecting a strong fourth quarter for Germany and inflation expectations picking up.
The biggest moves have been in energy and metals markets this morning. Renewed deal speculation heading toward the Nov. 30 OPEC meeting has West Texas Intermediate up 2.0 per cent and Brent up 2.2 per cent. In metals, copper is up 2.2 per cent overnight while precious metals (gold, silver and platinum) are up 0.8 per cent across the board. This could provide support to resource stocks today along with resource currencies including the Canadian and Australian dollars.
Now, here is a closer look at what's going on this morning and what is still to come.
MARKET DATA:
Futures (as of about 7:15 a.m. ET)
Dow +0.05 per cent; S&P 500 +0.19 per cent; Nasdaq: +0.22 per cent; TSX 60 +0.42 per cent
Equities
Japan's Nikkei +0.77 per cent
Shanghai composite index +0.79 per cent
Hong Kong's Hang Seng +0.06 per cent
Germany's DAX +0.43 per cent
London's FTSE +0.39 per cent
France's CAC 40 +0.55 per cent
Commodities
WTI crude oil (Nymex Dec.) +1.84 per cent at $46.53 (U.S.) a barrel
Gold (Comex Dec.) +0.62 per cent at $1,216.20 (U.S.) an ounce
Copper (Comex Dec.) +1.86 per cent at $2.52 (U.S.) a pound
Currencies
Canadian dollar +0.28 at 74.30 cents (U.S.)
U.S. dollar index -0.025 at 100.94
Bonds
Canada 10-year bond yield -2.71 at 1.55 per cent
KEY ECONOMIC RELEASES
Japan reports October trade surplus and its All Industry Activity Index for September.
European Central Bank president Mariio Draghi speaks to the European Parliament.
(8:00 a.m. ET) U.S. Federal Reserve vice chair Stanley Fischer speaks.
(8:30 a.m. ET) Canada reports its September Wholesale Trade figures. The estimate is for it to be unchanged from August.
(8:30 a.m. ET) The U.S. reports its Chicago Fed National Activity Index. Estimates are for it to be unchanged.
KEY STOCKS TO WATCH
Also see: Monday's small-cap stocks to watch
LifeLock jumped 14.2 percent to $23.70 after Symantec said it would buy the identity theft protection services company for $2.3 billion.
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Headwaters rose 18.2 percent to $23.75 after Australia's Boral Ltd said it would buy the U.S. construction and building products maker for $1.8 billion.
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Facebook rose 1.26 percent to $118.50 after announcing a $6 billion share repurchase program.
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Analog chipmaker Macom Technology Solutions Holdings Inc said on Monday that it would buy fellow chipmaker Applied Micro Circuits Corp for about $770 million in cash and stock to expand its connectivity business.
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Earnings include: Canadian Solar Inc.; Palo Alto Networks Inc.; Tyson Foods Inc.; Weibo Corp.; Xcite Energy Ltd.
With files from wire services, cnbc.com, marketwatch.com