Equities
Global stocks were mixed in cautious trading as investors awaited more clarity on U.S. President Donald Trump’s reciprocal tariff plan.
Wall Street’s main indexes opened flat as data showed U.S. retail sales came in softer than expected, with all three benchmarks set for weekly gains, . The Dow Jones Industrial Average rose 0.02 per cent to 44,720.99, the S&P 500 fell 0.01 per cent to 6,115.52, and the Nasdaq Composite gained 0.06 per cent to 19,956.821 at the bell.
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.02 per cent lower at 25,692.85, as investors took a breather after strong gains in the previous session.
In Canada, investors are getting results from Enbridge Inc., Fortis Inc., TC Energy Corp., MTY Food Group Inc. and Magna International Inc.
Enbridge has reported a rise in its adjusted profit for the fourth quarter, on higher Mainline tolls and lower power costs. It along with TC Energy and Magna announced dividend increases.
“While global financial markets may be inclined to take some relief from the delay in the immediate imposition of reciprocal tariffs, it is not clear to us whether the delay necessarily reflects a lower likelihood that they will eventually be imposed,” Barclays analysts said in a note.
War and peace: World market themes for the week ahead
Overseas, the pan-European STOXX 600 was flat in morning trading. Britain’s FTSE 100 slid 0.29 per cent, Germany’s DAX declined 0.33 per cent and France’s CAC 40 rose 0.43 per cent.
In Asia, Japan’s Nikkei closed 0.79 per cent lower, while Hong Kong’s Hang Seng jumped 3.69 per cent.
Commodities
Oil prices were on the rise, poised to end three weeks of decline, buoyed by rising fuel demand and expectations that U.S. plans for global reciprocal tariffs would not come into effect until April, giving more time to avoid a trade war.
Brent futures rose 1.05 per cent at US$75.79 a barrel, while West Texas Intermediate (WTI) crude gained 0.88 per cent to US$71.92.
“Positive development on the trade front in light of U.S. tariff delays paves the way for some recovery in oil prices this morning, as the risk environment warms up to the prospects of further trade consensus being reached,” said Yeap Jun Rong, a market strategist at IG.
“However, gains in oil prices may seem limited as market participants have to digest the prospects of Russian supplies being brought back on the market amid potential Ukraine-Russia peace talks,” Yeap said.
In other commodities, spot gold was up 0.3 per cent at US$2,936.99 an ounce. U.S. gold futures advanced 0.6 per cent to $2,961.30.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 70.41 US cents to 70.64 US cents in early trading. The Canadian dollar was up about 2 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, dropped 0.41 per cent to 106.87.
The euro advanced 0.23 per cent to US$1.0490. The British pound rose 0.29 per cent to US$1.2602.
In bonds, the yield on the U.S. 10-year note was last down at 4.491 per cent.
Economic news
Euro zone real GDP
(8:30 a.m. ET) Canada’s manufacturing sales and new orders for December. The Street is projecting month-over-month increases of 1.0 per cent and 1.1 per cent, respectively.
(8:30 a.m. ET) Canadian wholesale trade for December. Estimate is a month-over-month rise of 0.5 per cent.
(8:30 a.m. ET) Canadian new motor vehicle sales for December. Estimate is a year-over-year increase of 6.5 per cent.
(8:30 a.m. ET) U.S. retail sales for January.
(8:30 a.m. ET) U.S. import prices for January. Consensus is a rise of 0.4 per cent from December an up 1.9 per cent year-over-year.
(9:15 a.m. ET) U.S. industrial production and capacity utilization for January.
(10 a.m. ET) U.S. business inventories for December. Consensus is a month-over-month gain of 0.1 per cent.
(10:30 a.m. ET) Bank of Canada Senior Loan Officer Survey for Q4.
With Reuters and The Canadian Press