Equities
Global markets were mostly higher as investors stayed focused on the U.S. Federal Reserve policy decision tomorrow, when it is expected to begin an easing cycle that could see an outsized interest rate cut.
In Canada, consumer price index data due later today could signal whether the Bank of Canada will extend its interest rate cuts next month.
Wall Street futures were pointing higher after a mixed close yesterday.
TSX futures were in positive territory after closing yesterday at an all-time high.
“It’s back to the Fed put,” said Eddie Kennedy, head of bespoke discretionary fund management at Marlborough Investment Management.
“Everyone’s pricing in the soft landing and it feels like the Fed have been quite transparent that we’re in a rate cutting environment. Generally stocks have done well post those sort of environments,” Kennedy added.
Overseas, the pan-European STOXX 600 was up 0.53 per cent in morning trading. Britain’s FTSE 100 rose 0.71 per cent, Germany’s DAX advanced 0.36 per cent and France’s CAC 40 climbed 0.52 per cent
In Asia, Japan’s Nikkei closed 1.03 per cent lower, while Hong Kong’s Hang Seng gained 1.37 per cent.
Commodities
Oil prices were steady after rising more than $1 yesterday, as traders assessed concerns over U.S. production in the aftermath of Hurricane Francine and also the prospect of lower U.S. crude stockpiles.
Brent crude futures for November held their ground at US$72.77 and West Texas Intermediate (WTI) crude futures for October climbed 0.17 per cent to US$70.21 a barrel.
“Oil prices managed to recover slightly … (An) extreme bearish state over the past weeks called for some near-term stabilization, with prices previously touching their lowest level since 2021,” said Yeap Jun Rong, market strategist at IG.
In other commodities, spot gold was steady at US$2,584.77 an ounce, while U.S. gold futures were 0.1 per cent higher at US$2,611.70.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 73.53 US cents to 73.64 US cents in the early premarket period. The Canadian dollar was up about 0.25 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.15 per cent to 100.61.
The euro advanced 0.07 per cent to US$1.1143. The British pound rose 0.05 per cent to US$1.3223.
In bonds, the yield on the U.S. 10-year note was last down at 3.617 per cent ahead of the North American opening bell.
Economic news
(8:15 a.m. ET) Canadian housing starts for August. Estimate is a decline of 3.4 per cent on an annualized rate basis.
(8:30 a.m. ET) Canadian CPI for August. The Street is expecting an increase of 0.1 per cent from July and up 2.1 per cent year-over-year.
(8:30 a.m. ET) U.S. retail sales for August. Consensus is a decline of 0.2 per cent from July.
(9:15 a.m. ET) U.S. industrial production for August. The Street is projecting a rise of 0.1 per cent month-over-month with capacity utilization up 0.1 per cent to 77.9 per cent.
(10 a.m. ET) U.S. NAHB Housing Market Index for September.
(10 a.m. ET) U.S. business inventories for July.
(6 p.m. ET) Bank of Canada deputy governor Carolyn Rogers speaks in Toronto.
Also: U.S. Fed meeting begins in Washington
With Reuters and The Canadian Press
Read More: Before the Bell: What every Canadian investor needs to know today