Equities
Global markets slipped as the U.S. and Iran exchanged fire in the Middle East, dampening hopes that a diplomatic solution could be close.
Wall Street futures extended gains after a stronger-than-expected jobs report signaled resilience in the labour market and eased concerns about a slowdown in the U.S. economy.
TSX futures were in positive territory even as Statscan reported unexpected job losses in April.
In Canada, investors are getting results from Brookfield Asset Management Ltd., Telus Corp., Enbridge Inc., Algonquin Power & Utilities Corp. and Emera Inc.
Brookfield Asset Management reported an 11-per-cent increase in profits from fees and raised US$21-billion in the first quarter, emphasizing its ownership of hard assets such as real estate and infrastructure as bulwarks in unsteady markets, James Bradshaw reports.
Telus posted flat revenue, a net income decline of 50 per cent and lower net new mobile phone subscribers in the first quarter, and announced the retirement of its chief financial officer as it goes through a leadership transition, Irene Galea writes.
“The market seem to be taking every chance to price in a quick end to the war,” said Jan von Gerich, chief analyst at Nordea.
“But it seems unlikely there’s going to be an agreement. I still think there are going to be disruptions in the Strait [of Hormuz] for a longer time and it won’t be resolved any time soon.”
Overseas, the pan-European STOXX 600 was down 0.55 per cent in morning trading. Britain’s FTSE 100 slid 0.2 per cent, Germany’s DAX fell 0.95 per cent and France’s CAC 40 gave back 0.82 per cent.
In Asia, Japan’s Nikkei closed 0.19 per cent lower, while Hong Kong’s Hang Seng fell 0.87 per cent.
Commodities
Oil prices were steady after renewed fighting broke out between the United States and Iran, threatening a shaky ceasefire and dashing hopes for progress to reopen the Strait of Hormuz, a key transit route for oil and liquefied natural gas.
Brent crude futures gained 0.54 per cent to $100.60 a barrel. West Texas Intermediate (WTI) crude rose 0.52 per cent to $95.30 a barrel.
“The market is on the cusp of a complete breakdown,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
“Price formation is no longer anchored in a pragmatic reading of the war’s trajectory or the physical realities in the Strait of Hormuz.”
In other commodities, spot gold was up 0.8 per cent to US$4,720.42 an ounce. U.S. gold futures for June delivery rose 0.4 per cent to US$4,729.80.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 73.02 US cents to 73.30 US cents in early trading. The Canadian dollar was up about 1.11 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, declined 0.17 per cent to 97.89. The dollar was pegged at $1.3688.
The euro climbed 0.44 per cent to US$1.1776. The British pound advanced 0.46 per cent to US$1.3613.
In bonds, the yield on the U.S. 10-year note was last down at 4.365 per cent.
Economic news
China’s aggregate yuan financing, new yuan loans and trade surplus
Japan’s real cash earnings and services and composite PMI
Germany’s industrial production and trade surplus
8:30 a.m. ET: Canadian employment for April. The economy lost 17,700 jobs from March, compared with forecasts of 15,000 added jobs. The unemployment rate rose to 6.9 per cent.
8:30 a.m. ET: U.S. nonfarm payrolls for April, which increased more than expected while the unemployment rate held steady at 4.3 per cent. The 115,000 jobs added beat estimates of a gain of 60,000 jobs. The unemployment rate remained at 4.3 per cent as expected.
10 a.m. ET: U.S. University of Michigan Consumer Sentiment Index for May.
10 a.m. ET: U.S. wholesale inventories for March.
With Reuters and The Canadian Press
