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

Equities

Global stocks recovered from lows hit overnight after Democrats won control of both the Senate and the House in the U.S. midterm elections, which has fuelled fears that rapid AI sector growth could be hamstrung by regulatory scrutiny.

Wall Street futures were in positive territory after a mixed close for major North American markets yesterday.

TSX futures followed sentiment higher.

In Canada, investors are getting results from Brookfield Renewable Partners LP, Cenovus Energy Inc., Great-West Lifeco Inc., Manulife Financial Corp., Nutrien Ltd., Sun Life Financial Inc. and WSP Global Inc.

On Wall Street, markets are watching earnings from McDonald’s Corp., Qualcomm Inc. and Uber Technologies Inc.

“Democrats pulled off a double victory in the US midterm elections that few saw coming at the onset of the year. The blue wave means the federal government is sure to be ​divided on most issues,” Deborah Cunningham, chief investment officer, global liquidity markets at Federated Hermes, said.

“That ‌typically creates a blockade against new legislation — an environment which broad financial markets traditionally view favorably as variables decrease.”

Overseas, the pan-European STOXX 600 was up 0.98 per cent in morning trading. Britain’s FTSE 100 rose 0.77 per cent, Germany’s DAX climbed 1.1 per cent and France’s CAC 40 gained 1 per cent.

In Asia, Japan’s Nikkei closed 1.42 per cent lower, while Hong Kong’s Hang Seng climbed 1.67 per cent.

Commodities

Oil prices eased in a volatile session as investors ​awaited Washington’s next move in the U.S.-Israeli war ‌on Iran, after Democrats captured control of Congress from President Donald Trump’s Republicans in the midterm elections.

Brent futures slipped 0.77 per cent to US$102.80 a barrel. West Texas ​Intermediate (WTI) crude futures were down 0.22 per cent to US$95.88.

“President Trump’s conflicting signals, with military strikes continuing alongside statements downplaying further escalation, have made it difficult for traders to build strong directional conviction,” said Priyanka Sachdeva, head of market insights at Phillip Nova.

“I believe some profit-taking ‌and reduction ​in speculative long positions are ‌justified, particularly after the sharp rally in October,” said Sachdeva.

In other commodities, spot gold rose ​3 per cent to US$4,046.91 an ounce, while U.S. gold futures for December delivery gained 3 per cent to US$4,057.20.

Currencies and bonds

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

The day range on the loonie was 71.34 US cents to 71.69 US cents in early trading. The Canadian dollar was up about 2.18 per cent against the greenback over the past month. It traded at $1.3951 per US$1.

The U.S. dollar index, which weighs the greenback against a group of currencies, dropped 0.53 per cent to 101.32.

The euro advanced 0.61 per cent to US$1.1260. The British pound gained 0.58 per cent to US$1.3491.

In bonds, the yield on the U.S. 10-year note was last down at 4.921 per cent.

Economic news

China services and composite PMI

Euro zone CPI and services and composite PMI

8:15 a.m. ET: U.S. ADP National Employment Report for October.

8:30 a.m. ET: Canada’s merchandise trade balance for September.

8:30 a.m. ET: U.S. goods and services trade deficit for September.

9:30 a.m. ET: Canada’s S&P global services PMI for October.

9:45 a.m. ET: U.S. S&P global services and composite PMI for October.

10 a.m. ET: U.S. ISM services PMI for October.

With Reuters and The Canadian Press