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Wall Street futures rose sharply on Tuesday after traders returned to work after a long weekend. Key European markets have also risen, helped by stabilizing global sentiment. TSX futures were positive, as crude oil prices regained some recent losses.
In the early pre-war period, futures tied to the three key U.S. indexes made solid gains, with Dow futures adding more than 500 points at a time, while Nasdaq futures gaining approximately 2 percent. Markets in the United States closed on Monday and come out of a brutal week of sales. The S&P / TSX Composite Index ended the session up 1.34% on Monday, helped by a jump in telecom shares.
Traders are now awaiting testimony from Federal Reserve Chairman Jerome Powell in Washington later this week for further evidence of how aggressive the US Federal Reserve will be in its fight to curb inflation.
“We certainly have a few more hours of peace in the markets,” said Swissquote senior analyst Ipek Ozcardeskaya in an early note.
“But things will start to get serious with Jerome Powell’s six-month testimony, which is expected on Wednesday and Thursday, where he will reiterate how strong the Fed is committed to fighting rising inflation in the United States.”
She said the recovery of US shares “should remain limited to Powell’s testimony.”
“But in terms of pricing, we may not see aggressive pricing this week, as federal fund futures are already estimating an almost 100% chance of an increase of 75 basis points at the FOMC meeting in July,” she said.
In that country, Statistics Canada said retail sales rose 0.9 percent in April, shortly before the 0.8 percent increase economists forecast. According to early estimates, the agency expects sales to grow by 1.6% in May, although this figure is subject to revision.
On the corporate side, Andrew Willis of The Globe reports that federal regulators have begun their review of planned sales by Rogers Communications Inc. of the Mobile Mobile service of Freedom Mobile of Quebecor Inc. on Monday, as Bay Street approved a deal designed to pave the way for Rodgers’ proposed takeover of Shaw Communications Inc. Regulators insist that any deal between Rodgers and Shaw, the country’s two largest cable companies, must ensure that consumers can continue to choose between four mobile phone providers.
Abroad, the pan-European STOXX 600 jumped 0.44% by noon. The British FTSE 100 rose 0.49%. The German DAX and the French CAC 40 rose 0.38% and 0.76%, respectively.
In Asia, the Japanese Nikkei rose 1.84%. Hong Kong’s Hang Seng rose 1.87%.
Goods
Crude oil prices rose initially, regaining some of last week’s deep losses as fears of limited supplies continue to support the market.
Brent’s daily range is $ 114.13 to $ 116. The West Texas Intermediate ranges from $ 106.82 to $ 110.75. Both benchmarks reported heavy losses last week.
“The market remains extremely tight, but the threat of recession is one of the few negative forces on crude oil prices,” said OANDA senior analyst Craig Erlam.
“Another thing is whether this will be enough to create something more than a two-way price action. The price has risen in the previous month and the bullish case remains much more convincing. “
Weekly data on US crude oil inventories will be delayed by one day this week due to the holiday on Monday, June 16, and data from the American Petroleum Institute industry for the week ending June 17 should be sent on Wednesday, and data of the U.S. Energy Information Administration on Thursday.
For other commodities, gold prices fell, although a slight decline in the US dollar offered some support.
Spot gold fell 0.2% to $ 1,835.59 an ounce. US gold futures fell 0.1% to $ 1,838.90.
“The good news about gold is that a lot of money tightening is now at a price, which is the main reason for it,” Mr Erlam said.
“The increased risk of a recession seems to be driving the search for a traditional safe haven that could sustain it in the future.”
Currencies
The Canadian dollar appreciated, driven by positive risk sentiment and improved commodity prices, while its counterpart in the US withdrew ahead of readings later this week by Fed Chairman Jerome Powell.
The daily range of loonie is 76.98 US cents to 77.49 US cents.
Investors fared slightly better than expected retail sales in early April on Tuesday, but the more significant economic headline for the week comes on Wednesday with the release of inflation data in May.
On world markets, the US dollar index, which weighs the greenback against a group of world currencies, fell 0.3% to 104.10, ahead of Mr. Powell’s testimony to Congress, which kicks off on Wednesday.
The euro rose 0.5% to $ 1.0563 after ECB chief economist Philip Lane said the ECB would raise interest rates by 25 basis points at its July meeting, but its increase in September is still pending. to be resolved, according to a Reuters report.
The Australian dollar, often seen as a proxy for risk sentiment, rose 0.3 percent after Australian Reserve Governor Philip Lowe pointed to impending further interest rate hikes, but downplayed the chances of a 75-point increase.
For bonds, the yield on the 10-year US bond was moderately higher than 3.264% in the early pre-market period.
More company news
Hydro One Ltd.. says CEO Marc Pouesca is stepping down. The Toronto-based company says he is leaving to take a leadership position at a company closer to his family in western Canada later this year. Hydro One says William Sheffield has been appointed interim president and CEO.
Kellogg said on Tuesday that it is splitting into three separate companies, focusing on snacks, North American cereals and plant businesses. Kellogg said that its cereals and crop divisions in the United States, Canada and the Caribbean together account for about 20% of its net sales in 2021, while the rest of the business accounts for about 80% of sales.
Elon Musk said there were still several unresolved issues with him Twitter transaction, including the number of users of spam in the system and the collection of a long part of the transaction. “We are still awaiting a decision on this issue and this is a very important issue,” he said, reiterating doubts about Twitter’s claims that fake or spam accounts represent less than 5% of its active users who can provide income. “And then, of course, the question arises whether the debt part of the circle will be collected? And then will shareholders vote “yes”?
JetBlue Airways Corp. further improved its proposal to acquire a takeover target Spirit Airlines by $ 2 to $ 33.50 per share in cash upon completion of the due diligence review.
Economic news
(8:30 a.m. ET) Canadian Retail Sales for April.
(8:30 a.m. ET) Fed National Activity Index in Chicago for May.
(10 a.m. ET) Sales of existing homes in the United States in May.
With Reuters and the Canadian press
Editor’s Note: Carolyn Rodgers, Senior Deputy Governor of the Bank of Canada, will speak in Toronto on Wednesday. An early version of this story incorrectly stated the date of her remarks as Tuesday.
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