Before the Bell: A Comprehensive Guide for Canadian Investors
Equities
Global markets are experiencing a surge, with traders optimistic about the stock market despite the complex world economics and politics. However, Wall Street futures took a hit after major North American markets declined yesterday.
TSX futures indicate a positive trend as commodity prices continue to rise. Canadian investors are eagerly awaiting results from Cogeco Inc. and Cogeco Communications Inc.
Wall Street is focused on earnings from Bank of America Corp., Citigroup Inc., and Wells Fargo & Co., with Ben Laidler, head of equity strategy at Bradesco BBI, noting a positive sentiment towards equities and a gradual shift from the U.S. to other markets.
Overseas, the STOXX 600 rose 0.08%, the FTSE 100 gained 0.26%, the DAX fell 0.31%, and the CAC 40 advanced 0.16%. In Asia, the Nikkei soared 1.48%, and the Hang Seng rose 0.56%.
Commodities
Oil prices are on the rise for the fifth consecutive session due to concerns over Iranian supply disruptions caused by civil unrest and escalating tensions with the U.S. Brent futures reached 1.3% to US$66.31 per barrel, while WTI crude advanced 1.3% to US$61.96 per barrel.
Jorge Montepeque, managing director at Onyx Capital Group, warns of geopolitical instability and potential supply disruptions, emphasizing the possibility of a regime change in Iran and a potential U.S. attack.
Spot gold prices hit a record high of US$4,639.48 per ounce before settling at US$4,627.72, a 0.9% increase. U.S. gold futures for February delivery also rose 0.8%.
Currencies and Bonds
The Canadian dollar strengthened against the U.S. dollar, trading between 71.94 US cents and 72.05 US cents. Over the past month, the loonie has lost 0.75% against the greenback.
The U.S. dollar index, which measures the greenback's strength, declined 0.05% to 99.08. The euro strengthened 0.04% to US$1.1650, and the British pound gained 0.2% to US$1.3450.
In the bond market, the U.S. 10-year note yield dropped to 4.155%.
Economic News
Key economic indicators are set to be released, including:
- 8:30 a.m. ET: U.S. retail sales for November
- 8:30 a.m. ET: U.S. PPI Final Demand for October and November
- 8:30 a.m. ET: U.S. current account deficit
- 10 a.m. ET: U.S. existing home sales for December
- 10 a.m. ET: U.S. business inventories for October
- 2 p.m. ET: U.S. Beige Book release
Stay tuned for these critical updates as they could impact global markets and investment strategies.
