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Equity
Wall Street futures were higher early Monday after modest losses last week. European markets maintained gains as the session progressed. TSX futures also rose alongside positive global sentiment.
Futures linked to the three key US indices were all in positive territory at the beginning of the pre-market period, with S&P and Nasdaq futures advancing more than 1%. All three recorded another week of losses last week with the Nasdaq and S&P recording eight consecutive weeks of losses. The S & P / TSX Composite Index ended the session on Friday with a 1.15% drop. The index still reached its third consecutive weekly advance, adding 0.2% per week.
This week, Wall Street will wait for the latest US inflation figures on Friday. These come before next week’s Federal Reserve meeting and another planned rate hike.
“As we look at US CPI figures for May this week, the main concern for investors is that in their growing urgency to contain the rising risk of inflation, central banks they tighten monetary policy too quickly and bring the global economy into recession, “said Michael Hewson. , said CMC Markets UK chief market analyst.
“It is becoming increasingly clear from the tone of some Fed officials that a break in the US rate hike cycle seems unlikely at this time,” he said.
In Canada, investors will get international trade numbers from April on Tuesday followed by employment data from May to the end of the week.
“Friday’s May employment report is expected to show an increase of 15,000 jobs, which would coincide with the April increase,” said Alvin Tan, RBC’s Asia forex strategist.
“Employment growth has slowed sharply in recent months, as strong labor demand is tempered by a reduction in the number of workers available to hire, as evidenced by the 5.2% unemployment rate. in April, the lowest since at least 1976 “.
As for companies, Rogers Communications Inc. filed its response on Friday to the Competition Bureau’s attempt to block its merger with Shaw Communications after the markets closed. Alexandra Posadzki of the Globe reports that Rogers says Canada’s competition commissioner has taken an “unreasonable” position and has not shown that Rogers’ $ 26 billion attempt to acquire Shaw Communications would substantially reduce competition in the market. Wireless.
Abroad, the pan-European STOXX 600 was up 1.03% at noon. The British FTSE 100 gained 1.31%. Germany’s DAX and France’s CAC 40 were up 1.21% and 1.35%, respectively.
In Asia, Japan’s Nikkei finished 0.56 percent higher. Hong Kong’s Hang Seng rose 2.71 percent with earnings from technology stocks.
Goods
Crude oil prices faltered at first after Saudi Arabia raised its July crude oil sales costs despite an increase in OPEC + production.
The daily range in Brent is US $ 119.63 to US $ 121.95. The West Texas Intermediate range is $ 118.96 to $ 121. Brent gained 1.8% on Friday, while WTI gained 1.7%.
On Sunday, Saudi state oil producer Aramco said Saudi Arabia was raising the official selling price of its Arab light crude in Asia by $ 2.10 from June to a premium of $ 6.50 compared to average of Oman and Dubai benchmarks, according to Reuters.
This move came as OPEC + members agreed last week to increase production in July and August by 648,000 barrels per day, or 50 percent more than expected.
However, Stephen Innes, managing partner of SPI Asset Management, said the initial rebound in Saudi price rises was offset somewhat by reports that the US may allow more Iranian oil in global markets to lean against prices before the midterm elections in November.
In other commodities, gold prices rose slightly helped by a modest decline in the US dollar.
Cash gold rose 0.1% to $ 1,851.98 an ounce in the early hours of Monday morning, while U.S. gold futures rose 0.2% to $ 1,854.60 .
Coins
The Canadian dollar was higher, supported by positive risk sentiment and gains in crude oil prices, while its US counterpart experienced slight falls against a group of world currencies.
The loonie’s day range is from 79.35 US cents to 79.64 US cents.
“CAD maintains a strong tone, although strong stocks and robust crude (and commodity prices in general) are adding to CAD support in the session,” said Shaun Osborne, chief strategist Scotiabank Currency Exchange.
“The Bank of Canada’s policy decision and communication last week – a 50 bp increase and a clear warning that a more aggressive flight path may be needed for rates in the coming months – suggests that the CAD it is poised to strengthen further in the coming weeks as political expectations improve. “
Traders will get Canadian trade numbers on Tuesday followed by the monthly labor force survey on Friday.
In the world markets, the US dollar index, which compares the green dollar with a group of currencies, fell 0.1% on Monday morning to 101.99, close to its lowest since the end of April , according to Reuters figures.
Meanwhile, the euro rose 0.2% against the green dollar to $ 1.074 ahead of the ECB’s rate decision over the weekend. The European Central Bank is not expected to start raising rates until later in the summer.
The yen was trading at 130.73 right next to its two-decade low of 131.35 against the US dollar, and at 140.3 near its seven-year low of 140.36 against the euro.
The Australian dollar remained stable at US $ 0.7218 on Monday ahead of a central bank policy decision over the weekend.
In bonds, U.S. 10-year bond yields fluctuated slightly to 2.957 percent during the pre-dawn period.
More company news
Starbucks Corp. said Howard Schultz would continue to be the interim CEO of the coffee chain until the end of the first quarter of next year as he seeks a permanent successor.
JetBlue Airways Corp. said on Monday that the airline has submitted an improved proposal to acquire Spirit Airlines Inc. The proposal offers Spirit shareholders a higher value and a prepayment of US $ 1.50 per share of the cash consideration, JetBlue said.
Chinese regulators are concluding probes for a year Didi Global Inc.Full Truck Alliance Co. and Kanzhun Ltd, and are already preparing this week to lift the ban on adding new users, the Wall Street Journal reported Monday.
Economic news
China’s PMI and foreign reserves
With Reuters and The Canadian Press