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Global markets edged higher as a respite in the global bond selloff and a drop in oil prices steadied nerves ahead of a pivotal U.S. Federal Reserve decision later in the day. |
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Wall Street futures were in positive territory after major North American markets closed down yesterday. |
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TSX futures followed sentiment higher. |
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In Canada, investors are getting results from Dollarama Inc. |
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On Wall Street, markets are watching earnings from Lennar Corp. |
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“We maintain our tactically cautious/neutral view into the Fed,” JPMorgan analysts wrote, noting that the market consensus expectation is for a 25 basis-point rate hike accompanied by little forward guidance. |
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The meeting “could be a clearing event” for the market “to reset rate hike expectations,” they added, but warned “inaction risks institutional credibility.” |
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Overseas, the pan-European STOXX 600 was up 0.31 per cent in morning trading. Britain’s FTSE 100 rose 0.53 per cent, Germany’s DAX advanced 0.07 per cent and France’s CAC 40 gained 0.27 per cent. |
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In Asia, Japan’s Nikkei closed 0.69 per cent higher, while Hong Kong’s Hang Seng climbed 0.19 per cent. |
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Oil prices declined as reports that Saudi Arabia was offering additional crude cargoes via Oman eased concerns about the scale of Middle East supply disruptions. |
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Brent crude futures were down 1 per cent to US$107.70 a barrel. West Texas Intermediate (WTI) futures fell 1.89 per cent to trade at US$103.80 a barrel. |
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“News around Saudi Arabia exporting from the Gulf suggests concerns that the disruption could be larger are easing,” said UBS analyst Giovanni Staunovo. |
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In other commodities, spot gold was up 0.7 per cent to US$4,324.36 anounce, after touching a more than one-month low on Monday. U.S. gold futures for December delivery rose 0.8 per cent to US$4,365. |
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The Canadian dollar weakened against its U.S. counterpart. |
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The day range on the loonie was 71.73 US cents to 71.87 US cents in early trading. The Canadian dollar was down about 0.84 per cent against the greenback over the past month. It traded at $1.3929 per US$1. |
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The U.S. dollar index, which weighs the greenback against a group of currencies, inched up 0.06 per cent to 99.68. |
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The euro slipped 0.02 per cent to US$1.1540. The British pound eased 0.07 per cent to US$1.3467. |
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In bonds, the yield on the U.S. 10-year note was last down at 4.993 per cent. |
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Japan’s core machine orders |
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Euro zone’s industrial production and labour costs. |
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8:15 a.m. ET: Canada’s housing starts for August. Estimate is an annualized rate rise of 2.6 per cent. |
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8:30 a.m. ET: Canadian building permits for July. Estimate is a month-over-month drop of 10.0 per cent. |
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8:30 a.m. ET: U.S. retail sales for August. The Street expects a rise of 0.8 per cent month-over-month (versus a fall of 0.4 per cent in July). |
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8:30 a.m. ET: U.S. import prices for August. Consensus is a flat reading month-over-month but a gain of 6.1 per cent year-over-year. |
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10 a.m. ET: U.S. NAHB Housing Market Index for September. |
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10 a.m. ET: U.S. business inventories for July. The Street is projecting a gain of 0.2 per cent from June. |
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1:30 a.m. ET: Bank of Canada’s summary of deliberations for Sept. 2 decision is released. |
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2 a.m. ET: U.S. Fed announcement and summary of economic projections with Chairman Kevin Warsh’s press briefing to follow. |
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With Reuters and The Canadian Press |
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