Equity Markets
U.S. stock futures pointed to a higher opening Thursday as traders looked to snap a losing streak which has seen the Dow drop more than 200 points in the last two days. Earnings and the U.S. economy continue to remain front and centre. The U.S. Federal Reserve's Beige Book, released Wednesday afternoon, suggested the U.S. economy "is continuing to expand at a decent clip" indicating a continued – albeit moderate – economic improvement, TD economist Katherine Judge noted in a commentary. The report, she said, points to a continued, gradual course of rate hikes. In Canada, TSX futures, meanwhile, pointed to a lower start to the day after oil took a big hit on Wednesday. Crude prices rebounded Thursday but traders remained cautious as huge inventories counter suggestions from OPEC and other oil-producers that supply cuts could be extended.
Global stocks managed modest gains with shares in both Europe and Asia trending higher, helped by a rebound in crude's rebound. Concern over the first round of the French presidential elections this coming weekend continued to affect sentiment. In early trading, Britain's FTSE 100 was steady at 7,116.71 in early trading while the CAC 40 in France jumped 0.6 per cent to 5,031.49. Germany's DAX was steady at 12,020.15. In Asia, Japan's Nikkei 225 closed largely unchanged, ended trading down 0.1 per cent. China's Shanghai Composite was also little changed, finishing the trading day up 0.6 per cent.
Commodities
Crude prices recovered some lost ground after Wednesday's big decline, which saw prices drop more than 3 per cent. The gains were fueled by signals from top Gulf producers that OPEC-led supply cuts could be extended past the middle of this year. Reuters reported that OPEC members Saudi Arabia and Kuwait suggested that an effort by the Organization of the Petroleum Exporting Countries and other producers, including Russia, to cut oil output was likely to be extended beyond June. Both Brent crude and West Texas Intermediate futures were higher early Thursday. However, gains were tempered by ongoing concern over the supply overhang. Figures released Wednesday pointed to a drop in U.S. crude stocks but also a surprise build in gasoline supplies.
"The continued rise in U.S. rig counts and U.S. production, as well as the slow progress in getting inventories lower is likely to raise the tensions within OPEC about the effectiveness of the production quotas and cuts agreed since the end of last year," Michael Hewson, chief market analyst at CMC Markets U.K., said in a noted.
Gold prices firmed Thursday as tensions over North Korea and the French presidential elections continued to lend support to safe-haven assets. Spot gold prices were unchanged early Thursday after the metal suffered its worst one-day drop in over a month on Wednesday, fall 0.8 per cent.
Currencies and bonds
The U.S. dollar was weaker against most major currencies early Thursday. The usual factors – geopolitical tensions, continued worries about U.S. President Donald Trump's ability to push through his fiscal agenda – weighed on the greenback.
"We still expect the (U.S.) dollar to strengthen a bit more into the end of year, but I do see more and more signs that perhaps the dollar has peaked," Barclays strategist Hamish Pepper told Reuters.
The Canadian dollar was also down slightly against the U.S. dollar in early going as rebounding oil prices failed to fuel excitement for the loonie.
In bonds, France's borrowing costs edged lower ahead of a bond auction coming just before the weekend presidential election. French bonds have come under heavy selling pressure this year with surprise support for candidates at both ends of the political spectrum rattling investors. Other euro zone bond yields were little changed Thursday.
Stocks set to see action
General Motors shares could see some action after the auto maker announced Venezuelan authorities had illegally seized its plant in Valencia. "Yesterday, GMV's (General Motors Venezolana) plant was unexpectedly taken by the public authorities, preventing normal operations. In addition, other assets of the company, such as vehicles, have been illegally taken from its facilities," GM said in a statement. GM vowed to take legal action over the move.
Consumer-products giant Unilever NV saw its shares rise in Europe after posting better-than-expected results. Unilever said underlying sales rose 2.9 per cent in the first quarter, beating analysts' estimates, which called for a 2-per-cent increase.
Earnings were due from Verizon Communications Inc. before the start of trading. After the bell, Visa Inc. and Mattel Inc. both release their latest results.
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With files from wire services