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Wall Street futures were higher early Monday after a modest loss last week. European markets made gains as the session progressed. TSX futures also rose along with positive global sentiment.
All futures linked to the three key US indices were in positive territory at the beginning of the pre-market period, with S&P and Nasdaq futures up more than 1%. All three posted another losing week last week, with Nasdaq and S&P recording eight consecutive weeks of losses. The S & P / TSX composite index ended Friday’s session down 1.15%. The index still managed to rise for the third consecutive week, adding 0.2% for the week.
This week, Wall Street will expect the latest data on inflation in the United States on Friday. They come before the Federal Reserve meeting next week and another expected increase in interest rates.
“As we look ahead to the US consumer price index this May, the main concern for investors is that in their growing urgency to cope with the growing risk of inflation, central banks are tightening monetary policy too quickly and pushing the global economy into recession.” , Michael Husson, said chief market analyst at CMC Markets UK.
“It’s becoming increasingly clear from the tone of a number of Fed politicians that a pause in the US interest rate cycle seems unlikely at the moment,” he said.
In Canada, investors will receive international trade data for April on Tuesday, followed by job numbers in May at the weekend.
“Friday’s May employment report is expected to show an increase of 15,000 jobs, which would be in line with the increase from April,” said Alvin Tan, RBC’s Asian exchange rate strategist.
Employment growth has slowed dramatically in recent months, as strong labor demand has been mitigated by a reduction in the number of employees, as evidenced by the 5.2 percent unemployment rate in April – the lowest since 1976. d.
On the corporate side, Rogers Communications Inc. submitted its response to the Competition Bureau’s attempt to block its merger with Shaw Communications on Friday after markets closed. Globe’s Alexandra Posadzki reports that Rodgers says Canada’s competition commissioner has taken an “unreasonable” stance and has failed to demonstrate that Rodgers’ $ 26 billion attempt to take over Shaw Communications would significantly reduce competition in the wireless network. .
Abroad, the pan-European STOXX 600 rose 1.03% by noon. The British FTSE 100 rose 1.31%. The German DAX and the French CAC 40 increased by 1.21% and 1.35%, respectively.
In Asia, Japan’s Nikkei finished 0.56% higher. Hong Kong’s Hang Seng jumped 2.71% due to gains in technology stocks.
Goods
Crude oil prices fluctuated initially after Saudi Arabia increased the cost of crude oil sales in July despite an increase in OPEC + production.
Brent’s daily range is $ 119.63 to $ 121.95. The West Texas Intermediate range is US $ 118.96 to US $ 121. Brent rose 1.8 percent on Friday, while WTI rose 1.7 percent.
On Sunday, Saudi state oil producer Aramco said Saudi Arabia had raised its official selling price in July for its Arab light crude oil for Asia by $ 2.10 from June to a $ 6.50 premium over the Oman average. Dubai, according to Reuters.
The move came even when OPEC + members agreed last week to increase production in July and August by 648,000 barrels a day, or 50 percent more than planned.
However, Stephen Ines, managing partner at SPI Asset Management, said the initial rebound in rising Saudi Arabia prices was somewhat offset by reports that the United States could allow more Iranian oil on world markets to rely on prices before intermediate prices. elections in November.
For other commodities, gold prices rose, aided by a moderate withdrawal of the US dollar.
Spot gold rose 0.1 percent to $ 1,851.98 an ounce early Monday morning, while US gold futures rose 0.2 percent to $ 1,854.60.
Currencies
The Canadian dollar was higher, supported by positive attitudes to risk and gains in crude oil prices, while its counterpart in the US fell slightly against a group of world currencies.
The daily range of loonie is 79.35 US cents to 79.64 US cents.
“CAD maintains a solid tone, although hard stocks and stable crude oil prices (and commodity prices in general) add to CAD’s support during the session,” said Sean Osbourne, chief currency strategist at Scotiabank.
“The Bank of Canada’s policy decision and communication last week – a 50 bps increase and a clear warning that a more aggressive interest rate flight may be needed over the next few months – suggests that CAD is ready to move. intensified in the coming weeks as policy expectations are upgraded. “
Traders will receive Canadian sales numbers on Tuesday, followed by a monthly labor force survey on Friday.
On world markets, the index of the US dollar, which weighs the greenback against a group of currencies, fell 0.1% early Monday morning to 101.99, close to its lowest level since late April, according to Reuters.
Meanwhile, the euro rose 0.2% against the US dollar to $ 1.074 before the ECB’s interest rate decision later this week. The European Central Bank is not expected to start raising interest rates until later in the summer.
The yen traded at 130.73, slightly above its two-decade low of 131.35 against the US dollar and at 140.3 near its seven-year low of 140.36 against the euro.
The Australian dollar was stable at $ 0.7218 on Monday ahead of a decision on central bank policy later this week.
In the case of bonds, the yield on the 10-year bond in the United States has changed slightly – 2.957% in the period before dawn.
More company news
Starbucks Corp. said Howard Schultz will remain interim CEO of the café chain until the end of the first quarter of next year as she seeks a permanent successor.
JetBlue Airways Corp. said on Monday that the airline had submitted an improved acquisition offer Spirit Airlines Inc. The offer offers Spirit shareholders a superior value and a down payment of $ 1.50 per share of cash remuneration, JetBlue said.
Chinese regulators are closing annual investigations Didi Global Inc.Full Truck Alliance Co. and Kanzhun Ltd are preparing to lift the ban on adding new users this week, the Wall Street Journal reported on Monday.
Elon Musk asked Twitter Inc for data and information on spam and fake accounts to complete the acquisition of the social network for $ 44 billion, the billionaire said in a letter to the company on Monday. “Musk believes the company is actively resisting and thwarting his information rights,” Musk’s lawyers said in a letter.
Economic news
China PMI and foreign exchange reserves
With Reuters and the Canadian press
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