Equities
Global stocks steadied as markets eyed key U.S. payrolls data that may affect U.S. Federal Reserve rate policy, with investors cautiously optimistic that the world might avoid a full-on trade war.
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.05 per cent to 25,548.01, as gains in mining shares countered declines in communication stocks, and January jobs numbers came in stronger than expected.
Wall Street’s main indexes opened flat, as investors expected the Fed to take a more cautious stance on interest rates after the softer-than-expected jobs data.
The Dow Jones Industrial Average rose 0.03 per cent to 44,762.57, the S&P 500 fell 0.01 per cent, and the Nasdaq Composite dropped 0.09 per cent to 19,774.867 at the bell.
In Canada, investors are eyeing results from Canopy Growth Corp.
“The focus for the financial markets in recent weeks has been very much on [U.S. President Donald] Trump and his economic policies, in particular on trade, but today there is the potential for the jobs data to influence Fed rate expectations,” Derek Halpenny, a currency strategist at MUFG, said.
Trump’s tariff flip flops and other world market themes for the week ahead
Overseas, the pan-European STOXX 600 was flat in morning trading. Britain’s FTSE 100 slid 0.18 per cent, Germany’s DAX was little changed and France’s CAC 40 gave back 0.14 per cent.
In Asia, Japan’s Nikkei closed 0.72 per cent lower, while Hong Kong’s Hang Seng advanced 1.16 per cent.
Commodities
Oil prices rose after new sanctions were imposed on Iran’s crude exports but were on track for a third straight week of decline, hurt by U.S. President Donald Trump’s renewed trade war on China and threats of tariffs on other countries.
Brent crude futures were up 0.6 per cent to US$74.71 a barrel. West Texas Intermediate (WTI) crude gained 0.6 per cent to US$71 a barrel.
“Oil gains are limited, reflecting persistent concerns over supply and demand headwinds, including the potential for increased production from OPEC+ and the U.S., as well as tariff risks weighing on global oil demand,” said Yeap Jun Rong, market strategist at IG.
In other commodities, spot gold gained 0.3 per cent to US$2,865.36 an ounce, rising more than 2 per cent this week. U.S. gold futures added 0.4 per cent to trade at US$2,889.50.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 69.70 US cents to 69.92 US cents in early trading. The Canadian dollar was up about 0.64 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.12 per cent to 107.82.
The euro slid 0.11 per cent to US$1.0374. The British pound rose 0.13 per cent to US$1.245.
In bonds, the yield on the U.S. 10-year note was last up at 4.494 per cent.
Economic news
Japan household spending
Germany industrial production and trade surplus
(8:30 a.m. ET) Canadian employment for January. The economy added 76,000 jobs, compared with the 25,000 estimate. The unemployment rate fell to 6.6 per cent, lower than the 6.8-per-cent forecast.
(8:30 a.m. ET) U.S. nonfarm payrolls for January. Growth missed expectations at 143,000 jobs, short of the 170,000 jobs expected. The unemployment rate registered at 4 per cent..
(10 a.m. ET) U.S. wholesale inventories for December.
(10 a.m. ET) U.S. University of Michigan Consumer Sentiment for February.
With Reuters and The Canadian Press