Equities
Global markets turned lower as investors braced for a week packed with central bank meetings and corporate earnings, and also weighed a diplomatic impasse in U.S.-Iran negotiations.
Wall Street futures were mixed after the S&P 500 and the Nasdaq notched their latest in a series of record closing highs yesterday.
TSX futures were in the red ahead of the federal government’s economic update this afternoon.
In Canada, investors are getting results from Aecon Group Inc. and Toromont Industries Ltd.
On Wall Street, markets are watching earnings from Coca-Cola Co., Novartis AG, Visa Inc., General Motors Co., T-Mobile US Inc., Corning Inc., Starbucks Corp., Spotify Technology Inc., United Parcel Service Inc. and BP PLC.
“Inflation expectations have risen uncomfortably over the past two months, driven by a notable jump in energy prices,” Ipek Ozkardeskaya, senior analyst at Swissquote, wrote in a note. “At this stage, no one — including central bankers — can predict what comes next if Middle East tensions continue to disrupt energy flows.
“What we do know is that the longer the Strait of Hormuz remains under strain, the stronger the impact on markets will be.”
Overseas, the pan-European STOXX 600 was down 0.44 per cent in morning trading. Britain’s FTSE 100 slipped 0.13 per cent, Germany’s DAX declined 0.45 per cent and France’s CAC 40 fell 0.25 per cent.
In Asia, Japan’s Nikkei closed 1.02 per cent lower, while Hong Kong’s Hang Seng fell 0.95 per cent.
Commodities
Oil prices rose as stalled efforts to end the Iran war kept the Strait of Hormuz largely closed, constraining Middle East supplies, though the UAE’s announcement that it would leave OPEC and OPEC+ trimmed gains.
Brent crude futures for June climbed 2. per cent to US$111.20 a barrel. West Texas Intermediate (WTI) crude for June delivery rose 34 per cent to US$99.61 a barrel.
“Talks around ‘peace’ still look largely superficial and lack concrete evidence of de-escalation. Despite the rhetoric, vessel movement through the Strait of Hormuz remains curtailed, and that prolonged disruption is what’s keeping oil risk premiums elevated,” said Phillip Nova’s senior market analyst Priyanka Sachdeva.
In other commodities, spot gold was down 1.4 per cent to US$4,614.71 an ounce. U.S. gold futures for June delivery fell 1.4 per cent to US$4,629.20.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 73.09 US cents to 73.47 US cents in early trading. The Canadian dollar was up about 1.8 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.35 per cent to 98.84. The U.S. dollar traded at $1.3671.
The euro slid 0.3 per cent to US$1.1687. The British pound dropped 0.47 per cent to US$1.3471.
In bonds, the yield on the U.S. 10-year note was last up at 4.379 per cent.
Other corporate news
Barrick Mining has chosen the United States over Canada for its primary stock listing for its upcoming North American spin off, Niall McGee reports.
Economic news
The Bank of Japan, in an expected move, left short-term rates unchanged at 0.75 per cent but three of the nine-member board proposed hiking, in the first of several central bank meetings this week.
ECB’s three-year CPI expectations
9 a.m. ET: U.S. S&P Cotality Case-Schiller Home Price Index (20 city) for February.
9 a.m. ET: U.S. FHFA House Price Index for February. The Street is projecting a rise of 0.1 per cent from January and up 1.6 per cent year-over-year.
10 a.m. ET: U.S. Conference Board Consumer Confidence Index for April.
Also: Ottawa’s spring update and U.S. Fed meeting begins.
With Reuters and The Canadian Press
