Before the market opens: What every Canadian investor needs to know today

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Wall Street futures fell early on Friday, with key indexes lower for the week, as concerns about interest rates and a recession continued to plague the market. Major European stock indexes were weaker. TSX futures fell.

Dow, S&P and Nasdaq futures were all down more than 1% early in the premarket. All three had fallen sharply a day earlier on expectations that interest rates would continue to rise in the new year. The Nasdaq fell 3.23 percent on Thursday, the Dow Jones fell 2.25 percent and the S&P 500 fell 2.49 percent. The S&P/TSX composite index closed down 1.46%, with all 10 major sectors of the TSX closing lower.

The latest decline comes after the Fed hike half a percentage point, and said borrowing costs are likely to remain elevated for longer as it continues to battle high interest rates inflation, dashing hopes of a more dovish turn at the start of the new year. Recent U.S. inflation data has fueled hopes that easing price pressures will encourage the U.S. central bank to pull back on its aggressive rate hikes.

“The market has been ahead of the Fed several times this year, and the central bank may be fighting back just to prevent complacency from settling in the market and undermining its own tightening efforts,” said Craig Erlam, senior analyst at OANDA.

“But the situation is still the way back to 2% [inflation] Probably not as smooth as 9.1%, and can be just as disappointing at times. We should probably accept that now. “

The Fed’s latest rate hike was followed by similar moves by a number of global central banks, including the European Central Bank and the Bank of England. A number of Fed officials are due to speak on Friday.

In this country, Canadian investors will get wholesale trade data for October before the open. Economists expected a 1.3% gain for the month after rising 0.1% in September.

On the corporate front, The Globe’s Niall McGee reports that Panama ordered Vancouver-based First Quantum Minerals Ltd.’s Cobre Panama mine ceased commercial operations after the Central American country clashed with a major Canadian copper miner over a profit-sharing agreement. Panamanian President Laurentino Cortizo made the announcement in a televised address late Thursday.

Overseas, the pan-European Stoxx 600 index fell 0.78% in early trading. Britain’s FTSE 100 fell 0.38%. Germany’s DAX fell 0.62%, while France’s CAC 40 lost 0.79%.

In Asia, Japan’s Nikkei closed down 1.87%. Hong Kong’s Hang Seng edged up 0.49%.

commodity

Crude oil prices fell but were still on track for gains this week following supply disruptions and upbeat demand forecasts.

Brent was trading in an intraday range of $79.33 to $81.78 before dawn. West Texas Intermediate crude ranged from $74.17 to $76.57. Both benchmarks fell more than 2% early in the premarket after falling 2% on Thursday.

“The recent rally in oil prices is losing steam due to heightened risk aversion,” said Ed Moya, senior analyst at OANDA. “This [U.S.] The dollar could rebound here, which should put some pressure on oil prices. “

Still, crude prices were still on track for their biggest weekly gain since October, according to Reuters, as the Keystone pipeline was disrupted and forecasts from the International Energy Agency and others pointed to strong demand next year.TC Energy has since reported that the pipeline Open Wednesday in reduced capacity.

Elsewhere in commodities, gold was weaker and on track for its biggest weekly loss since last month following this week’s action by global central banks.

Spot gold was down 0.1% at $1,775.50 an ounce in early trade on Friday. It was down about 1% for the week, having hit a one-week low in the previous session.

U.S. gold futures rose 0.1% to $1,789.00.

currency

The Canadian dollar weakened, while the greenback held on to most of the previous session’s gains against a group of world currencies.

The Canadian dollar was trading in a range of 73.12 cents US to 73.62 cents US ahead of the North American open. The loonie was closer to the lower end of that spread before dawn.

Canadian investors get wholesale trade data for October ahead of trading.

In world markets, the U.S. dollar index , which measures the greenback against a group of world currencies, was little changed at 104.53 after rising more than 0.9% on Thursday on expectations the Federal Reserve would keep interest rates high for longer.

The euro was flat at $1.063 during European morning trade, according to Reuters. The currency fell 0.5% on Thursday after the European Central Bank (ECB) raised interest rates and sent more rate signals, raising concerns about the economic fallout.

The risk-sensitive Australian dollar fell 0.11% to $0.669. It fell 2.38% in the previous session, the biggest drop since March 2020, according to Reuters. NZD/USD rose 0.17% to $0.635.

On the bond front, the US 10-year Treasury yield rose to 3.495% early Friday.

More company news

Rio Tinto Limited said on Friday that it had completed a long-term acquisition of a 49% stake Turquoise Hill Resourcesthe world’s top iron ore producer took a 66 percent stake in Mongolia’s Oyu Tolgoi mine, the world’s largest known copper-gold deposit. -Reuters

economic news

(8:30 AM ET) Canada Wholesale Trade for October.

(8:30AM ET) New Canadian home price index for November.

(8:30 AM ET) Canada’s international stock trades for October.

Reuters and Canadian media