Global markets were mixed on Wednesday, while oil prices climbed following a report that the United States is considering fresh military action against Iran. Wall Street futures were muted as investors weighed strong tech earnings against renewed inflation worries.
North American Markets
Futures of the resource-heavy TSX edged higher. In Canada, investors are digesting results from Air Canada, Bombardier Inc., Agnico Eagle Mines Ltd., Eldorado Gold Corp., AltaGas Ltd., and Spin Master Corp. On Wall Street, markets are watching earnings from Apple Inc., Eli Lilly and Co., Mastercard Inc., Caterpillar Inc., Merck & Co. Inc., Amgen Inc., Bristol-Myers Squibb Co., and ConocoPhillips.
Overseas Markets
The pan-European STOXX 600 was down 0.16 per cent in morning trading. Britain’s FTSE 100 advanced 0.74 per cent, Germany’s DAX slid 0.21 per cent, and France’s CAC 40 fell 1.12 per cent. In Asia, Japan’s Nikkei closed 1.06 per cent lower, while Hong Kong’s Hang Seng fell 1.28 per cent.
Commodities
Brent crude prices jumped to a fresh four-year high on concerns that the US-Iran conflict could worsen and lead to a protracted Middle East oil supply disruption that might hurt global economic growth. The market moved higher after Axios reported that US President Donald Trump is slated to receive a briefing on plans for a series of military strikes on Iran, hoping it will return to negotiations on its nuclear program.
Brent crude futures rose 3.2 per cent to US$121.76 a barrel after touching an intraday high of US$126.41, the loftiest since March 9, 2022. West Texas Intermediate (WTI) futures were up 1.4 per cent to $108.37 a barrel. Brent has more than doubled year to date, and WTI was up about 90 per cent. “Prospects for any near-term resolution to the Iran conflict or a reopening of the Strait of Hormuz remain dim,” IG market analyst Tony Sycamore said in a note.
In other commodities, spot gold was up 1 per cent to US$4,588.09 an ounce after falling to its lowest point since March 31 in the previous session. US gold futures for June delivery rose 0.4 per cent to US$4,578.10.
Currencies and Bonds
The Canadian dollar strengthened against its US counterpart. The day range on the loonie was 73.02 US cents to 73.19 US cents in early trading. The Canadian dollar was up about 1.8 per cent against the greenback over the past month. The US dollar index, which weighs the greenback against a group of currencies, declined 0.15 per cent to 98.82. The US dollar traded at $1.3672. The euro climbed 0.05 per cent to US$1.1683. The British pound advanced 0.07 per cent to US$1.3487. In bonds, the yield on the US 10-year note was last down at 4.413 per cent.
Economic News
Key data releases include China’s PMI, Japan’s retail sales and industrial production, Euro zone’s GDP and CPI, Germany’s GDP and unemployment, and the ECB’s monetary policy meeting and Bank of England rate decision. At 8:30 a.m. ET, Canada’s monthly real GDP for February is expected to rise 0.2 per cent from January, along with the payroll survey for February. US GDP and GDP price index for Q1 are projected at annualized rate increases of 2.1 per cent and 4.0 per cent, respectively. US personal spending and income for March are expected to rise 0.9 per cent and 0.3 per cent month-over-month. The core PCE price index for March is forecast to gain 0.3 per cent from February and 3.2 per cent year-over-year. The employment cost index for Q1 is expected to rise 0.8 per cent from Q4 and 3.3 per cent year-over-year. Initial jobless claims for the week of April 25 are estimated at 212,000, down 2,000 from the previous week. At 9:45 a.m. ET, the Chicago PMI for April will be released, followed by the leading indicator for February at 10 a.m. ET.
With Reuters and The Canadian Press
