Equities
Global markets extended gains in the wake of positive U.S. economic data while a mixed picture in China kept up pressure on policymakers for more stimulus.
Wall Street futures were in positive territory after hotter-than-forecast retail sales numbers and an unexpected drop in jobless claims.
TSX futures edged higher as crude prices climbed following another record close for the market yesterday.
On Wall Street, markets are watching earnings from American Express Co. and Procter & Gamble Co.
While China’s economy is still struggling, fourth-quarter data could show some improvement and possibly allow Beijing to achieve its 5-per-cent target for this year, according to Vasu Menon, managing director of investment strategy at OCBC.
“China clearly needs a lot more fiscal and monetary stimulus, and markets are waiting with bated breath for details,” he said.
Overseas, the pan-European STOXX 600 was up 0.21 per cent in morning trading. Britain’s FTSE 100 slipped 0.21 per cent, Germany’s DAX gained 0.2 per cent and France’s CAC 40 rose 0.4 per cent.
In Asia, Japan’s Nikkei closed 0.18 per cent higher, while Hong Kong’s Hang Seng rose 3.61 per cent.
Commodities
Crude oil futures steadied after data showed a fall in crude and fuel inventories in the United States and the emergence of more fiscal stimulus to boost China’s economy, though prices were headed for their biggest weekly loss in more than a month.
Brent crude futures gained 0.3 per cent to US$74.68 a barrel, while West Texas Intermediate (WTI) crude was at US$70.96 a barrel, up 0.4 per cent.
IG market strategist Yeap Jun Rong said while oil prices remained subdued, there were signs of near-term stabilization after the market factored in fading geopolitical risks over the past week.
“The recent run in stronger-than-expected US economic data does offer further relief around growth risks, but market participants are also side-eyeing any recovery in demand from China, given recent stimulus unleash,” he said.
In other commodities, spot gold was up 0.4 per cent at US$2,703.61 an ounce after scaling a record high of US$2,714 earlier in the session. U.S. gold futures rose 0.4 per cent to US$2,719.20.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 72.45 US cents to 72.54 US cents in the early premarket period. The Canadian dollar was down about 1.54 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, fell 0.13 per cent to 103.69.
The euro rose 0.06 per cent to US$1.0839. The British pound advanced 0.23 per cent to US$1.3041.
In bonds, the yield on the U.S. 10-year note was last up at 4.110 per cent ahead of the North American opening bell.
Economic news
China real GDP, industrial production, retail sales and fixed asset investment. China’s economy grew at the slowest pace since early 2023 in the third quarter, and though consumption and industrial output figures for last month beat forecasts, a tumbling property sector remains a big challenge for Beijing as it tries to boost growth.
Japan CPI: Japan’s core inflation slowed in September due to the rollout of energy subsidies but an index excluding the effect of fuel held steady, a sign that broadening price pressure will keep the central bank on track to raise interest rates further.
(8:30 a.m. ET) Canadian household and mortgage credit for August.
(8:30 a.m. ET) U.S. housing starts for September. The Street expects an annualized rate decline of 0.5 per cent.
(8:30 a.m. ET) U.S. building permits for September. Consensus is a 1.4-per-cent decline on an annualized rate basis.
With Reuters and The Canadian Press
