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Equity
TSX futures rose in the early hours of Monday as markets begin to look at key inflation figures over the weekend. In Europe, major European markets were also modestly positive to start the week. US markets are closed for holidays.
Last week, Wall Street closed a volatile week with a downward note despite Friday’s daily gains for both the Dow and the S&P 500. The S & P / TSX Composite Index ended Friday’s session with a drop of 0. 39 percent.
“After such a torrid week last week, a corrective rebound from the stock markets this week cannot be ruled out,” OANDA senior analyst Jeffrey Halley said in a note.
“However, we may have to wait another 24 hours, as US markets are closed today. With nothing on today’s calendar, European markets can be comforted by falling energy and commodity prices. first, although European natural gas supply is tighter than ever as Russian flows slow.
In Canada, the key economic publication of the week arrives on Wednesday with new Statistics Canada inflation figures.
Bank of Montreal chief economist Douglas Porter says the May report could be “potentially even more shocking than the US version a week ago.” He said BMO is looking for a 12% increase in petrol prices to boost the monthly consumer price index above 1%. That would raise general inflation to 7.4% at an annual rate, up from 6.8% the previous month, Porter said.
“The risks seem to be skewed upwards in this call,” Porter said.
“In this case, we suspect that this will be enough to convince the Bank of Canada to also trigger a ‘very unusual’ 75 bp rate hike next month,” he said. “Like the Fed, we have also increased our call on the BoC rate end point by a quarter to 3.25 percent, bringing the expected cumulative tightening to 300 basis points.”
As for the companies, Andrew Willis and Alexandra Posadzki of The Globe report that Rogers Communications Inc. plans to recruit 450,000 new mobile phone customers as part of its deal to sell wireless operator Freedom Mobile to Quebecor Inc. for $ 2.85 billion, a deal that marks a crucial step in Rogers’ campaign to get regulatory approval for its takeover of Shaw Communications Inc. On Friday afternoon, Rogers announced plans to sell Shaw’s Freedom Mobile division, Canada’s fourth-largest wireless carrier with 1.7 million customers, to Quebecor.
Outside, the pan-European STOXX 600 rose 0.33 percent in morning trading. The British FTSE 100 advanced 0.65%. Germany’s DAX added 0.31 percent, while France’s CAC 40 fell 0.06 percent.
In Asia, Japan’s Nikkei fell 0.74%. Hong Kong’s Hang Seng was up 0.42%.
Goods
Crude oil prices stabilized in the early hours of Monday after a turbulent overnight session with economic concerns continuing to affect sentiment, while tighter supply offered some support.
The daily range in Brent is $ 111.52 to $ 114.38. The range at West Texas Intermediate is $ 108.72 to $ 110.95. Both benchmarks experienced a sharp decline last week.
“There’s a lot of scratches, especially in terms of the massive downward movement of crude oil on Friday, with people grabbing it to explain what at first seemed like an irrational move, as the big drop is certainly , was out of the realm of demand and recession narrative that has been filling new rollers all week, “Stephen Innes, managing partner of SPI Asset Management, said in a statement.
“Still, oil markets are not immune to the constant recession and the destruction of demand.”
Meanwhile, Reuters reports that Libya’s oil production has remained volatile following blockades by groups in the east of the country.
Libyan oil minister Mohamed Oun told Reuters on Monday that the country’s total production is about 700,000 barrels per day (bpd). Libya’s production had fallen between 100,000 and 150,000 bpd, a spokesman for the oil ministry said last week.
Gold prices, meanwhile, rose modestly in an uneven session, helped by a weaker US dollar.
Cash gold rose 0.1 percent to $ 1,841.59 an ounce in the early hours of Monday morning, after falling 0.3 percent before the session. U.S. gold futures gained 0.2% to $ 1,843.40.
Coins
The Canadian dollar was firmer, trading at around 77 US cents, while its US counterpart withdrew against a group of world currencies, but still remained not far from the highs of two. decades.
The loonie’s day range is from 76.67 US cents to 77.01 US cents.
“CAD has been modestly consolidated in a quiet trade as the broader risk mood is maintained, despite the sharp drop in cryptography over the weekend,” said Shaun Osborne, forex strategist in chief of Scotiabank, in a note.
“We mention this only in the context of the general sense of risk and wonder if a persistent push for bitcoins below $ 20,000 could affect the wider market, as institutional investors arrived late to the cryptocurrency“ party ”and it’s very they are likely to be exposed to significantly higher prices. ”
There were no major Canadian economic releases on Monday’s calendar. Investors are now waiting for Wednesday’s inflation report.
In the world markets, the US dollar index fell 0.25 percent to 104.44, but remained close to the two-decade high of 105.79 last week, according to Reuters figures .
The euro rose 0.2% against the US dollar to $ 1.05155 even after French President Emmanuel Macron lost an absolute majority in the country’s parliamentary elections.
The US dollar fell 0.2% to 134,715 yen from 135.44 yen in Asia-Pacific trading hours, close to Wednesday’s high of 135.60. high since October 1998, according to Reuters.
More company news
Nicolas Van Praet of The Globe reports that signal and communications workers have gone on strike Canadian National Railway Co. in a development that threatens to aggravate transportation bottlenecks across the country amid the COVID-19 pandemic. Some 750 members of Canada’s International Brotherhood of Electric Workers quit their jobs Saturday after failing to agree on a new employment contract with the railroad, union negotiator Steve Martin said in an interview. The two sides do not meet in person, but continue to talk and exchange contract proposals, he said.
Economic news
PPI Germany
US markets close (June)
With Reuters and The Canadian Press