Before the Bell: What every Canadian investor needs to know today

Equities

Stock markets climbed in cautious trading as oil eased from six-month highs ahead of a week packed with central bank meetings and corporate earnings that will further test investor confidence in the AI boom.

As Mark Rendell reports, the Bank of Canada is widely expected to raise its benchmark interest rate for the first time in three years on Wednesday in a bid to prevent high oil prices from becoming a broader and more entrenched inflation problem.

Wall Street futures were in positive territory after major North American markets closed lower Friday, while TSX futures followed sentiment higher.

In Canada, investors are getting results from Celestica Inc. and PrairieSky Royalty Ltd.

On Wall Street, markets are watching earnings from Verizon Communications Inc. and Welltower Inc.

“The main message from global central banks grappling with this year’s macroeconomic surprises is that a relatively shallow rate-hike cycle is ‌under way,” said Bruce ​Kasman, global head of economics at JPMorgan.

“G3 central ‌banks are likely to remain on hold, but Canada should start its tightening cycle and first moves are expected from the U.K. and Sweden next month.”

Overseas, the pan-European STOXX 600 was up 0.39 per cent in morning trading. Britain’s FTSE 100 rose 0.46 per cent, Germany’s DAX advanced 0.75 per cent and France’s CAC 40 gained 0.84 per cent.

In Asia, Japan’s Nikkei closed 0.8 per cent lower, while Hong Kong’s Hang Seng rose 0.51 per cent.

Commodities

Oil prices fell after surging last ​week to near six-month highs, amid hopes of ‌easing hostilities between the United States and Iran, although persistent attacks on key producer Saudi Arabia kept investors wary.

Brent crude ​futures were down 2 per cent to US$114.40 a barrel. West Texas Intermediate (WTI) crude futures dropped 2.4 per cent to US$100.80 a barrel. ⁠

“Concerns over ​renewed military hostilities in the ‌Middle East, which drove much of last week’s crude rally, have eased this morning, ​but the reprieve may prove temporary,” said Vandana Hari, ⁠founder of oil market analysis provider Vanda Insights.

Hari said U.S. President Donald Trump ⁠has not dispelled market expectations that strikes on Iran could still follow after the Nov. 3 midterm elections. “We ​therefore expect volatility to remain elevated, with risks still skewed to the upside,” she added.

In other commodities, spot gold rose 0.3 per cent to US$4,008.70 an ounce. U.S. gold futures for December delivery gained 0.3 per cent to US$4,021.90.

Currencies and bonds

The Canadian dollar weakened against its U.S. counterpart.

The day range on the loonie was 71.16 US cents to 71.51 US cents in early trading. The Canadian dollar was up about 1.11 per cent against the greenback over the past month. It traded at $1.4020 per US$1.

The U.S. dollar index, which weighs the greenback against a group of currencies, edged down 0.02 per cent to 101.79.

The euro gained 0.02 per cent to US$1.120. The British pound fell 0.22 per cent to US$1.3343.

In bonds, the yield on the U.S. 10-year note was last down at 4.998 per cent.

Economic news

Germany’s business sentiment

8:30 a.m. ET: Canadian wholesale trade for September.

With Reuters and The Canadian Press