Essential Insights for Canadian Investors Before Today’s Market Opens

Global equity markets displayed caution as traders hesitated to make significant moves following the recent selloff fueled by artificial intelligence concerns. Wall Street futures showed a positive trend as investors analyzed flat retail sales data, marking the beginning of an important week for economic indicators.

Canadian Market Insights

In Canada, TSX futures experienced a slight rise after the main stock index recorded its largest gain in six months. Key earnings reports are anticipated from notable companies such as:

• Finning International Inc.
• Intact Financial Corp.
• Toromont Industries Ltd.

Wall Street Earnings to Monitor

On Wall Street, investors are focused on earnings reports from various major firms, including:

• AstraZeneca PLC
• Coca-Cola Co.
• Ford Motor Co.
• Gilead Sciences Inc.
• CVS Health Corp.
• Duke Energy Corp.
• Marriott International
• Spotify Technology SA
• Ecolab Inc.
• Robinhood Markets Inc.

Skepticism is growing among investors regarding big tech stocks like Microsoft, Google, Amazon, and Meta, despite strong performance results. Ipek Ozkardeskaya, a senior analyst at Swissquote, noted the shift towards value stocks, suggesting a continued rotation out of technology investments.

Overseas Market Performance

Globally, the pan-European STOXX 600 index remained relatively unchanged. The following trends were noted:

• Britain’s FTSE 100 fell by 0.35%.
• Germany’s DAX decreased by 0.14%.
• France’s CAC 40 slightly increased by 0.07%.

In Asia, Japan’s Nikkei Index reached a record high with a 2.28% gain. Meanwhile, Hong Kong’s Hang Seng Index rose by 0.58%.

Commodity Market Overview

In the commodities sector, oil prices experienced a minor uptick, reflecting traders’ concerns about potential supply disruptions amid ongoing U.S.-Iran tensions. The prices for major crude oil futures were as follows:

• Brent crude oil: US$69.32 per barrel (up 0.4%)
• West Texas Intermediate (WTI) crude: US$64.51 per barrel (up 0.2%)

Tamas Varga, an oil analyst at PVM Brokerage, indicated that the market’s focus remains on U.S.-Iran relations, although substantial supply disruptions are needed to alter current price trends significantly.

Currency and Bond Movements

The Canadian dollar showed signs of weakening relative to the U.S. dollar, with trading ranging from 73.65 to 73.82 US cents. Over the past month, the loonie appreciated by approximately 2.52% against its U.S. counterpart.

Meanwhile, the U.S. dollar index fell by 0.03% to 96.78. Other notable currency movements included:

• Euro: US$1.1912 (down 0.04%)
• British Pound: US$1.3684 (down 0.09%)

The yield on the U.S. 10-year Treasury note was reported at 4.160%.

Upcoming Economic Data

Key economic data will be released today, including:

• 6 a.m. ET: U.S. NFIB Small Business Economic Trends Survey for January.
• 8:30 a.m. ET: U.S. retail sales figures for December (unchanged from previous month).
• 8:30 a.m. ET: Employment cost index for Q4 (projected rise of 0.8%).
• 8:30 a.m. ET: U.S. import prices for December.
• 10 a.m. ET: U.S. business inventories for November.

Investors are advised to stay informed and prepared for market fluctuations as these economic indicators unfold during the week.