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Equity
Wall Street futures rose sharply in the early hours of Tuesday as traders returned to work after a long weekend. Major European markets also rose, helped by the consolidation of global sentiment. TSX futures were positive as crude oil prices recovered some recent losses.
At the start of the pre-market period, futures linked to the three key US indices experienced solid gains, with Dow futures adding more than 500 points at any given time, while Nasdaq futures gained about one 2%. U.S. markets closed Monday and come from a brutal week of sales. The S & P / TSX Composite Index ended Monday’s session with a 1.34 percent rise helped by a jump in telecommunications stocks.
Traders are now awaiting the testimony of Federal Reserve Chairman Jerome Powell in Washington this weekend for more clues as to how aggressive the US central bank will be in its fight to curb inflation.
“We certainly have a couple more hours of calm in the markets,” Swissquote senior analyst Ipek Ozkardeskaya said in an initial note.
“But things will start to get serious with Jerome Powell’s half-yearly testimony on Wednesday and Thursday, reiterating the strength of the Fed’s commitment to fighting rising inflation in the United States.”
He said the recovery in US stocks “should remain limited to Powell’s testimony.”
“But from a price point of view, we may not see an aggressive price this week, as the futures of the federated funds already have almost a 100% chance of raising the 75 basis points at the July meeting. FOMC, “he said.
In that country, Statistics Canada said retail sales rose 0.9 percent in April, slightly ahead of economists’ 0.8 percent increase. According to initial estimates, the agency expects sales to rise by 1.6 percent in May, although that figure is subject to review.
As for the company, Andrew Willis of The Globe reports that federal regulators began their review of Rogers Communications Inc.’s planned sale on Monday. of Freedom Mobile to Quebecor Inc., as Bay Street endorsed a deal that is believed to pave the way for Rogers. The proposed acquisition of Shaw Communications Inc. Regulators have insisted that any agreement between Rogers and Shaw, the two largest cable companies in the country, must ensure that consumers can continue to choose between four mobile phone providers.
Abroad, the pan-European STOXX 600 rose 0.44 percent at noon. The British FTSE 100 advanced 0.49%. Germany’s DAX and France’s CAC 40 rose 0.38% and 0.76%, respectively.
In Asia, Japan’s Nikkei rose 1.84%. Hong Kong’s Hang Seng advanced 1.87%.
Goods
Crude oil prices rose at the beginning, recovering from some of last week’s deep losses as supply concerns continue to prop up the market.
The daily range in Brent is $ 114.13 to $ 116. The range at West Texas Intermediate is $ 106.82 to $ 110.75. Both benchmarks suffered heavy losses last week.
“The market remains extremely tight, but the threat of recession is one of the few negative forces for crude oil prices,” said OANDA senior analyst Craig Erlam.
“Whether that will be enough to create more than a two-way price action is another matter. The price had risen over the previous month and the bullish case remains much more compelling.”
Weekly U.S. crude inventory data will be delayed one day this week due to the June holiday on Monday, with data from the American Petroleum Institute industry for the week ending June 17 will be presented on Wednesday and data from the U.S. Energy Information Administration on Thursday.
In other commodities, gold prices fell, although a slight drop in the US dollar provided some support.
Cash gold fell 0.2% to $ 1,835.59 an ounce. U.S. gold futures fell 0.1% to $ 1,838.90.
“The good news for gold is that there is a lot of monetary tightening now, which is the main downside,” Erlam said.
“It seems that the increased risk of recession is driving demand for the traditional safe haven that could keep it in favor in advance.”
Coins
The Canadian dollar won, helped by positive risk sentiment and improved commodity prices, while its US counterpart withdrew before testimony later last week from Fed Chairman Jerome Powell.
The loonie’s day range is from 76.98 US cents to 77.49 US cents.
Investors got a slightly better-than-expected reading on retail sales from April to early Tuesday, but the most important economic headline of the week arrives on Wednesday with the release of May inflation data.
In world markets, the U.S. dollar index, which compares the green dollar to a group of world currencies, fell 0.3% to 104.10, ahead of Powell’s testimony in Congress, which begins Wednesday.
The euro rose 0.5% to $ 1.0563 after ECB chief economist Philip Lane said the ECB would raise interest rates by 25 basis points at its July meeting. But the size of the September rise is yet to be decided, according to a Reuters report. .
The Australian dollar, often seen as an indicator of risk sentiment, rose 0.3% after Reserve Bank of Australia Governor Philip Lowe pointed to further rate hikes ahead, but downplayed the possibility of an increase of 75 basis points.
In bonds, U.S. 10-year bond yields were slightly above 3.264 percent at the beginning of the pre-market period.
More company news
Hydro One Ltd. says CEO Mark Poweska is resigning. The Toronto-based company says it will leave to take a leadership position at a utility company closer to its family in western Canada later this year. Hydro One says William Sheffield has been named interim chairman and CEO.
Kellogg he said on Tuesday that it was splitting into three separate companies, focused on snack, cereal and plant-based U.S. companies. Kellogg said its grain, plant and plant divisions in the U.S., Canada and the Caribbean collectively accounted for about 20 percent of its net sales in 2021, while the remaining business accounted for about 80 percent of its net sales. sales.
Elon Musk said there are still some unresolved issues with his Twitter agreement including the number of spam users in the system and the meeting of the debt portion of the agreement. “We are still awaiting a resolution on this matter, and this is a very important issue,” he said, reiterating doubts about Twitter’s claims that fake or spam accounts accounted for less than 5% of its daily active users. monetizable. “And then, of course, there’s the question of whether the debt portion of the round will be collected? And then the shareholders will vote in favor?”
JetBlue Airways Corp. further enhanced its offering to acquire the acquisition target Spirit Airlines from $ 2 to $ 33.50 per share in cash upon completion of your due diligence review.
Economic news
(8:30 am ET) April Canadian Retail Sales.
(8:30 am ET) US Fed Chicago National Activity Index for May.
(10:00 ET) Existing home sales in the United States for May.
With Reuters and The Canadian Press
Editor’s Note: Carolyn Rogers, Senior Deputy Governor of the Bank of Canada, will speak in Toronto on Wednesday. An earlier version of this story incorrectly indicated the date of his comments as Tuesday.