What every Canadian investor needs to know today

What every Canadian investor needs to know today

Be smart with your money. Get the latest investment insights delivered straight to your inbox three times a week, with Globe Investor’s newsletter. Register today.

stock

The main Canadian stock index rose at the opening on Monday along with improving global sentiment. On Wall Street, major indexes also started to rise following another losing week.

At 9:31 a.m. ET, the S&P/TSX Composite Index on the Toronto Stock Exchange was up 133.26 points, or 0.64 percent, at 20,923.99.

The Dow Jones Industrial Average rose 132.34 points, or 0.40 percent, to 33,032.04 points.

The Standard & Poor’s 500 Index opened up 26.18 points, or 0.64 percent, at 4,134.72 points, while the Nasdaq Composite Index rose 187.59 points, or 1.56 percent, to 12,200.33 points at the opening bell.

This week, Wall Street is awaiting the latest US inflation figures on Friday. This comes ahead of the Federal Reserve meeting next week and another expected interest rate hike.

“As we look forward to this week’s US CPI numbers for May, the main concern for investors is that with their increasing urgency to contain upward risks in inflation, central banks are tightening monetary policy too quickly and pushing the global economy into recession,” Michael Hewson said, said chief market analyst at CMC Markets UK.

“It is becoming increasingly clear from the tone of a number of Fed policy makers that a pause in the US interest rate raising cycle appears unlikely at the moment,” he said.

In Canada, investors will get the international trade numbers for April on Tuesday followed by the jobs numbers for May at the end of the week.

“The May employment report on Friday is expected to show a gain of 15,000 jobs, which is in line with the increase in April,” said Alvin Tan, Asia Forex strategist at RBC.

“Employment growth has slowed significantly in recent months as strong labor demand has been tempered by a decrease in the number of workers available for employment as evidenced by the April unemployment rate of 5.2 percent – the lowest level since at least 1976.”

On the company side, Rogers Communications Inc. Its response to the competition bureau’s attempt to block its merger with Shaw Communications Friday after markets closed. The Globe’s Alexandra Posadky reports that Rogers says the Canadian competition commissioner has taken an “unreasonable” position and has failed to demonstrate that Rogers’ bid to acquire Shaw Communications for $26 billion would significantly reduce competition in the wireless market.

Abroad, the pan-European STOXX 600 was up 1.03 percent by midday. Britain’s FTSE 100 Index rose 1.31 percent. Germany’s DAX and France’s CAC 40 advanced 1.21 percent and 1.35 percent, respectively.

In Asia, Japan’s Nikkei index finished 0.56 percent higher. Hong Kong’s Hang Seng Index jumped 2.71 percent thanks to gains in technology shares.

goods

Crude oil prices fluctuated early after Saudi Arabia raised its crude oil sales costs for July despite an increase in OPEC+ production.

Brent crude daily range is $119.63 to $121.95. The range at West Texas Intermediate is $118.96 to $121. Brent crude rose 1.8 percent on Friday, while West Texas Intermediate crude rose 1.7 percent.

Saudi oil producer Aramco said on Sunday that Saudi Arabia raised the July official selling price for its Arab Light crude to Asia by $2.10 from June to $6.50 against the average benchmarks in Oman and Dubai, according to Reuters.

The move comes even as OPEC+ members agreed last week to increase production in July and August by 648,000 barrels per day, or 50 percent more than planned.

However, Stephen Innes, managing partner at SPI Asset Management, said the initial bounce in Saudi prices was somewhat offset by reports that the United States might allow more Iranian oil in global markets to lean on prices ahead of the midterm elections in November.

In other commodities, gold prices rose with the help of a modest decline in the US dollar.

Spot gold was up 0.1 percent at $1,851.98 an ounce early Monday morning, while US gold futures were up 0.2 percent at $1,854.60.

Currencies

The Canadian dollar rose, supported by positive sentiment towards risk and gains in crude oil prices, while the Canadian dollar saw slight declines against a group of global currencies.

Today’s range on the Canadian dollar is 79.35 US cents to 79.64 US cents.

“The Canadian dollar maintains its strong support, although strong equities and strong crude oil (and commodity prices) add to the Canadian dollar’s ​​support in the session,” said Sean Osborne, senior FX analyst at Scotiabank.

“Last week’s Bank of Canada policy decision and outreach – a 50 basis point hike and a clear warning that a more serious price flight path may be necessary in the next few months – suggests to us that the Canadian dollar is preparing for further strengthening in the coming weeks as the policy outlook upgrades.”

Traders will get Canadian trade numbers on Tuesday followed by the monthly labor force survey on Friday.

In global markets, the US dollar index, which weighs the US currency against a group of currencies, fell 0.1 percent early Monday morning to 101.99, near its lowest level since late April, according to figures from Reuters.

Meanwhile, the euro was up 0.2 percent against the dollar at $1,074 ahead of the European Central Bank’s rate decision later in the week. The European Central Bank is not expected to start raising interest rates until later in the summer.

The yen traded at 130.73 from a two-decade low of 131.35 against the US dollar, and at 140.3 near a seven-year low of 140.36 against the euro.

The Australian dollar settled at $0.7218 on Monday ahead of the central bank’s policy decision later in the week.

In bonds, the yield on US 10-year notes was little changed at 2.957 per cent in the pre-dawn period.

More company news

Starbucks Corporation He said Howard Schultz will remain the coffee chain’s interim CEO until the end of the first quarter of next year, as it searches for a permanent successor.

JetBlue Airways Corporation On Monday, it said the airline made an improved takeover offer Spirit Airlines JetBlue said the proposal offers Spirit shareholders superior value and a prepayment of $1.50 per share of cash consideration.

Chinese regulators end a year-long investigation into Didi International CompanyFull Truck Alliance Co., and Kanzhun Ltd., are preparing early this week to lift the ban on adding new users, the Wall Street Journal reported Monday.

Ask Elon Musk Twitter Inc To obtain data and information about spam and fake accounts in order to complete his $44 billion acquisition of the social network, the billionaire said in a letter to the company on Monday. “Musk believes the company is actively resisting and thwarting his information rights,” according to Musk’s attorney’s letter.

economic news

Chinese PMI and foreign reserves

With Reuters and the Canadian press

2022-06-06 09:40:49

Leave a Comment

Your email address will not be published.