Canada’s main stock index opened down Monday with weakness in materials shares offsetting some strength in the energy sector. On Wall Street, key indexes were also lower in early trading ahead of tomorrow’s reading on U.S. inflation.
At 9:30 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 16.78 points, or 0.09 per cent at 19637.69.
In the U.S., the Dow Jones Industrial Average fell 23.85 points, or 0.07 per cent, at the open to 34,259.25. The S&P 500 opened lower by 8.58 points, or 0.19 per cent, at 4,406.66, while the Nasdaq Composite dropped 52.15 points, or 0.38 per cent, to 13,745.96 at the opening bell.
This week, markets will have a close eye on Tuesday’s U.S. inflation data for October.
“What everyone – most investors, every household and every politician want to see and to sense right now is the end of the global monetary policy tightening cycle, and the beginning of the end starts mostly with the Federal Reserve,” Swissquote senior analyst Ipek Ozkardeskaya said.
“A sufficiently soft inflation read should keep bond traders in appetite for further purchases and mask a part of the political worries, while disappointment could keep buyers on the sidelines and amplify a potential political-led selloff,” she said.
For the month, economists are expecting the annual rate of inflation in the U.S. economy to have eased to 3.3 per cent in October, from 3.7 per cent a month earlier, she said. Core inflation is seen holding steady at 4.1 per cent.
Sentiment on Wall Street, meanwhile, was tempered by news on Friday that rating agency Moody’s Investors Service lowered its ratings outlook for the U.S. government to negative from stable.
In Canada, investors will get third-quarter results from insurer Sun Life after the close of trading today. For the second quarter, the company posted net income of $660-million, down from $930-million the year before.
Later in the week, grocery giant Loblaw is slated to post its third-quarter earnings. Last week, The Canadian Press reported that Loblaw is worried the grocery code could “raise food prices for Canadians by more than $1-billion” in a letter sent to members of both the steering committee developing the code and the industry sub-committee on Nov. 1. The committee developing the code was created in response to calls from the industry to address fees that large grocery retailers charge suppliers, an issue that surfaced publicly in 2020, the news service reported. Loblaw’s earnings are due Wednesday morning.
Overseas, the pan-European STOXX 600 was up 0.53 per cent by midday. Britain’s FTSE 100 rose 0.64 per cent. Germany’s DAX and France’s CAC 40 added 0.21 per cent and 0.31 per cent, respectively.
In Asia, Japan’s Nikkei edged up 0.05 per cent.
Crude prices were steady in early trading after seeing solid gains on Friday but a loss of the the week.
The day range on Brent was 80.41 to US$81.53 in the early premarket period. The range on West Texas Intermediate was US$76.21 to US$77.30.
Crude prices rose about 2 per cent on Friday, helped by Iraq voicing support for production cuts by the OPEC+ group, but fell around 4 per cent for the week.
“Oil prices sustained their third consecutive weekly losses, driven by a growing bearish sentiment in the market,” Stephen Innes, managing partner with SPI Asset Management, said.
“Softer-than-expected macroeconomic data from major global economies exacerbated this downturn. Compounding the situation, central banks reinforced a hawkish stance, signalling an intention to implement additional rate hikes as a strategic measure to counter persistent inflation.”
The dual impact of economic concerns alongside an assertive central bank approach has contributed to the prevailing negative outlook on oil prices in the market, he said.
In other commodities, gold prices traded near three-week lows ahead of this week’s U.S. inflation report.
Spot gold was up 0.1 per cent at US$1,938.12 per ounce, by early Monday morning. U.S. gold futures gained 0.3 per cent to US$1,942.50.
The Canadian dollar was modestly lower while its U.S. counterpart held most of last week’s gains against a basket of world currencies.
The day range on the loonie was 72.35 US cents to 72.53 US cents in the early premarket period.
On world markets, the U.S. dollar index, with weighs the greenback against a selection of global currencies, was 0.09-per-cent lower at 105.77. The index was up 0.53 per cent over the past five days but down 0.82 per cent over the last month.
The euro was trading around US$1.0693, broadly steady against the greenback, according to figures from Reuters.
Britain’s pound was steady at US$1.2231.
In bonds, the yield on the U.S. 10-year note was up slightly at 4.638 per cent in the predawn period.
More company news
Dye & Durham Ltd. says it has launched a strategic review of its non-core assets in an effort to reduce its debt. The company says the review will examine a variety of options, including the potential sale of all or part of its non-core assets, including its financial services business. Dye & Durham CEO Matthew Proud says the company is working closely with its financial and legal advisers to ensure the review is “comprehensive, diligent and maximizes value.” -The Canadian Press
Canadian miner First Quantum Minerals said on Monday it had reduced ore processing at its mine in Panama as protests against the project were causing blockades at a port. Protesters have expressed concerns over a mining contract signed between the government and the company late last month, arguing that it was tainted with corruption and was highly favourable to the Canadian miner. -Reuters
Google-parent Alphabet said on Monday it had dissolved its stake in trading app operator Robinhood Markets. The disclosure comes months after Alphabet slashed its stake in the company by nearly 90 per cent. It had around 612,214 Robinhood shares after that sale. Alphabet had reportedly invested in Robinhood when the latter was an unlisted startup that had captured the enthusiasm of retail traders with its commission-free trades and easy-to-use interface. -Reuters
Australian pension fund AustralianSuper said on Monday it had rejected an “eleventh hour” offer from a Brookfield-led consortium and its partner EIG to drop its opposition to their $10.5 billion bid for Origin Energy and join the takeover. Australia’s largest pension fund reaffirmed its intention to reject the bid at the shareholder meeting on Nov. 23, hours after receiving the consortium’s “unsolicited” offer, the fund said in a statement.-Reuters
Dubai’s Emirates placed an order for 90 more Boeing 777X jets at the opening of the Dubai Airshow on Monday, including both variants of the future long-haul jet. The world’s largest international carrier also added five more Boeing 787s to an existing order, saying the total package of new widebody jets was worth over US$50-billion at list prices. -Reuters
Fed Governor Lisa Cook speaks (8:50 a.m.)
Monthly U.S. federal budget (2 p.m.)
With Reuters and The Canadian Press