Be smart with your money. Get the latest investment statistics straight to your inbox three times a week with the Globe Investor newsletter. Sign up today.
Equity
Canada’s top stock index began lower on Thursday with a weight in energy and health stocks. On Wall Street, key indices began to fall with technology stocks under pressure and concerns about inflation and interest rates persist.
At 9:34 a.m. ET, the Toronto Stock Exchange’s S & P / TSX Composite Index was down 81.05 points, or 0.39 percent, at 20,711.38.
In the US, the Dow Jones Industrial Average fell 82.28 points, or 0.25 percent, at the opening to 32,828.62.
The S&P 500 fell 14.12 points, or 0.34 percent, to 4,101.65, while the Nasdaq Composite fell 69.80 points, or 0.58 percent, to 12,016.47 in the opening bell.
“The stock market bad mood that has characterized the US stock markets in June continued [Wednesday] as Wall Street decided that inflation was a concern, after all, sending equity markets down, “senior OANDA analyst Jeffrey Halley said in an initial note.
Markets receive new inflation figures in the US on Friday morning. Before that, they receive a reading of the weekly unemployment claims in the U.S. early Thursday.
In this country, the Bank of Canada will be in charge of publishing the central bank’s financial system review this morning, followed by a press conference.
“We look forward to hearing from the BoC on the risks surrounding housing and household debt with a growing interest rate,” said Benjamin Reitzes, Canadian general manager and macro strategist at BMO.
Overseas, the pan-European STOXX 600 fell 0.47 percent shortly after the ECB confirmed it would end a long-term bond-buying program on July 1 and signaled a series of interest rates starting this summer.
The British FTSE 100 fell 0.49 per cent. Germany’s DAX and France’s CAC 40 fell 0.56% and 0.55%, respectively.
In Asia, Japan’s Nikkei managed to finish 0.04 percent. Hong Kong’s Hang Seng fell 0.66 percent. The sentiment was affected by the news that Shanghai’s Minhang District will conduct COVID-19 tests for all residents on June 11 and ordered residents to stay home during the period.
Goods
Crude oil prices faltered at first, shaken by new measures aimed at controlling COVID-19 in China.
The daily range in Brent is US $ 122.92 to US $ 123.60. The range at West Texas Intermediate is $ 121.33 to $ 122.43. Both benchmarks saw their best levels since Wednesday in March.
Prices were under pressure on Thursday in the early hours of the news that parts of Shanghai began imposing new blockade restrictions, and residents of Minhang District were ordered to stay home for two days to try to control COVID-19. , according to a Reuters report.
“The blockade of Shanghai’s Minhang district has called for much-needed attention to the reality of China’s zero VOCID policy in regional markets,” OANDA senior analyst Jeffrey Halley said in an initial note. .
Meanwhile, the U.S. Energy Information Administration reported that crude stockpiles rose 2 million barrels a week through June 3 to 416.8 million barrels. Analysts expected to see a drop of about 1.9 million barrels.
However, the US recorded a record drop in strategic crude oil reserves even as trade increased. In addition, gasoline inventories fell during the week compared to expectations of an increase that suggests continued demand.
In other commodities, gold prices fell as US Treasury yields remained high.
Cash gold fell 0.1% to $ 1,851.70 an ounce early Thursday morning, while U.S. gold futures fell 0.1% to $ 1,853.90 .
Coins
The Canadian dollar fell slightly at first, while its US counterpart remained stable against a group of global currencies.
The loonie’s day range is from 79.48 US cents to 79.69 US cents.
“The CAD backdrop remains broadly constructive, we believe, amid strong growth trends, positive trading terms and a falcon central bank,” said Shaun Osborne, chief currency strategist at Scotiabank.
“This should limit the scope of the CAD’s softness and keep the currency trend generally firmer compared to its major currency peers.”
Markets are expecting the latest Canadian employment statistics on Friday morning. Economists expect to see a modest increase of 10,000 jobs in the May report. The unemployment rate is expected to remain at 5.2%.
In world markets, the dollar index was generally at 102.64.
The euro was trading at 142.76 yen, just below its January 2015 high of 144.25 yen on Wednesday, according to Reuters figures. The Japanese currency has weakened by more than 4 percent against the euro so far in June.
Compared to the U.S. dollar, the yen fell to a new 20-year low of 134.56 yen per dollar at the start of trading before recovering to 133.79.
More company news
Transat AT Inc. reported that its second-quarter loss grew compared to a year ago as it worked to capitalize on the recovery of the travel business. The company says its net shareholder attributable loss was $ 98.3 million or $ 2.60 per diluted share for the quarter ended April 30. The result was compared to a loss of $ 69.6 million or $ 1.84 per diluted share a year earlier.
Nutrients, the world’s largest fertilizer producer, said on Thursday it plans to increase potash production to 18 million tonnes a year by 2025 to mitigate supply uncertainty in Eastern Europe. Potash prices, a key input used in nitrogen fertilizers, have skyrocketed since Western sanctions were imposed on Russia for its invasion of Ukraine, aggravating an already tight market. “The challenge of feeding a growing world has never been clearer, as global supply constraints have contributed to rising commodity prices and raised concerns about global food security,” said Ken Seitz. , interim president and CEO of Nutrien.
A burger and two chips will appear on the new logo above McDonald’s restaurants in Russia, the local company said, as it launched an advertising campaign ahead of its official reopening on Sunday. After more than three decades in Russia, McDonald’s Corp said in May that it was selling its restaurants in Russia to one of its local licensees, who would change their brand name to a new name that has not yet been revealed. “The logo represents the two main symbols of the restaurant: two yellow chips and a yellow-orange burger,” the press service said.
Target Corp. on Thursday it raised its quarterly dividend by 20% to $ 1.08 a share, despite the large retailer warning earlier this week of weaker margins. The company on Tuesday slashed its quarterly margin forecast issued less than a month ago, saying it would offer more discounts and cancel orders with suppliers as it struggles to eliminate excess inventory.
Economic news
(8:30 am ET) Initial unemployment claims in the U.S. for the week of June 4th.
(12 pm ET) US cash flow for the first quarter.
(10:30 am ET) Bank of Canada Financial Systems Review with press conference below.
With Reuters and The Canadian Press