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Before Bell: What any Canadian investor needs to know today



Wall Street futures lined higher early Thursday on further hints that trade tensions between the US and China are being relaxed. World stocks rose for a third session when the European Central Bank kept rates stable and confirmed the end of its quantitative lightweight program. In this country, Bay Street futures were slightly changed with raw prices relatively stable after the figures show a decline in US inventories last week.

The largest markets in Europe started the day before the ECB's decision. The markets in Asia ended higher after a positive day on Wall Street on Tuesday. Trade continues to be at the forefront. A Reuters reports that Chinese state-owned companies have bought more than 1.5 million. Ton of soybean, which marks the first big purchase for six months, helped to enhance the feeling. The purchases are seen as supporting positive developments early this month when US President Donald Trump met with Chinese leader Xi Jinping and struck a 90-day trading violence.

"Reports of China's success with Trump on the G20 help markets slowly less pessimistic about the U.S S-Sino relations," said Jasper Lawler, research director at London Capital Group. "And it increases the expectations of a trade agreement reached within 90 days timeframe."

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Nevertheless, he said investors remain warning because "they have seen progress before just for relationships to suddenly turn things worse. This caution is reflected in a mixed start for Europe after US markets closed positively but good by their high," he said.

The ECB said, as expected, it will complete its crisis-time bond program by the end of this month, but will continue to reinvest money from past bonds "for a long time past the date when it begins to raise the most important ECB interest rates and at least as long as necessary. "The bank launched its quantitative easing program four years ago to support economic growth in the euro area and strengthen inflation. The ECB also kept its key figures and said that it expects the key ECB interest rates "to remain at their current level at least through the summer of 2019."

On Bay Street, investors get a handful of earnings. Sobeys Owner Empire Co. Ltd. reported its latest performance before the start of the trade. In the last quarter, the merchant reported an adjusted earnings per share. Share of 40 cents up from 27 cents the previous year. The last quarter saw analysts forecasts that required adjusted earnings per Share of approx. 32 cents. Sales of the same store – excl. Fuel sales – rose 2.5 per cent. With the exception of pharmacy sales, sales increased by 3 percent.

Davidstea Inc. and Transat AT Inc. reports also.

Wall Street gains earnings after Costco Wholesale and Adobe Systems Inc.

Overseas European markets were mixed with the pan-European STOXX 600 edge down at 0.05 percent. Britain's FTSE 100 slipped 0.14 percent. Germany's DAX rose 0.23%, and France's CAC added 0.04%.

In Asia, the markets grew higher to ease trade issues. Shanghai Composite Index rose 1.23 percent. Hong Kong's Hang Seng gained 1.29%. In Japan, Nikkei added 0.99 percent.

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commodities

Raw prices were slightly changed ahead of the North American open with a report showing US stock inventory, which helps to compensate global concerns about market surpluses. Brent crude traded in the daily range of US $ 59.70 to US $ 60.59. The area of ​​the West Texas Intermediate was USD 50.78 to US $ 51.57.

The figures released Tuesday by the US Energy Information Administration fell by 1.2 million barrels last week. It was below market expectations, which had demanded a drop of 3 million barrels, but it was also noted in a similar report from the American Petroleum Institute earlier this week, which also showed a draw in inventories.

In the meantime, the Paris-based International Energy Agency expects that the world's raw supplies could face a deficit faster than expected, accompanied by a planned reduction in production of OPEC and its allies, as well as a decision by Alberta to reduce production in the new year. In a previous report, the IEA said that it is expected that the global oil market will remain in surplus through much next year. But in its latest report, the Agency says it expects to see a deficit in the second quarter if OPEC is holding its agreement to reduce production by 1.2 million barrels a day.

"Oil prices have stabilized overnight under pressure from high inventories, but supported by a draw in US stocks and indicating that the trade war between Chinese and American trade can ease," said OANDA analyst Dean Popplewell. "The global supply of" black things "has exceeded demand in the last two quarters, inflated inventory and pushes raw prices to its lowest level for 12 months at the end of November."

In other commodities, gold prices fell as US dollars rose and world stocks rose. Spot gold relieved 0.3% For US $ 1,241.50 per Ounce at midmorning in Europe, while US gold futures fell 0.3 percent. At US $ 1,245.80 per Ounce.

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"With stocks recovering this week, gold has fallen a bit out of favor as dealers complete their safe-haven efforts," said Fawad Razaqzada, an analyst at Forex.com, to Reuters.

Silver prices were also modest, while platinum prices became higher.

currencies

The Canadian dollar was slightly weaker when the US counterparty faced a basket of world currencies. The current area of ​​loonie so far 74.79 US cents to 74.94 US cents. Last week, wage lows dropped its lowest level for 18 months after Canadas Bank suggested that interest rates may not rise as fast as the markets had expected in the new year. This week, however, the Canadian dollar has seen little support from firmer raw prices. Elsa Lignos, RBC's Global Head of Foreign Exchange Strategy, also said in an early remark that a stock market rally has contributed to increasing the mood.

In other currencies, the US dollar index was from 0.1 per cent. To 96.945. The euro was slightly higher after Italy said it would reduce its budget plans, from which a showdown with the EU was set. The euro rose 0.2 per cent. To US $ 1,1394. The single currency has largely traded in an area of ​​$ 1.16 and $ 1.12 since August, according to Reuters figures.

"Despite the fact that markets have appreciated a lot in the way of the ECB's growth in recent weeks, the latest comments from [ECB chief economist] Peter Praet and President Draghi suggest that the ECB is ready to "review" the weakness of the euro area growth in Q3, "Lignos said." The ECB continues to make sure that the resistance in domestic demand means that the euro area must could produce growth about developments in the coming years, sufficient in the face of a tightening market to justify a normalization of policy. "

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The British pound preceded the vote of Prime Minister Theresa May, but remained relatively stable after winning the ballot paper and moving in a fairly narrow margin after the winners, as there is stiff opposition to its Brexit agreement.

In bonds, the yield on the US 10-year note was lower at 2,897 percent. The yield on the 30-year note was also lower at 3.14%.

Shares set to see action

AltaGas Ltd lower its annual dividend and said it would sell its indirect share in hydropower projects in northwestern British Columbia for about C1.39 billion. The company's plan to sell 55 per cent. -Post follows 35 per cent. Trading in the facilities for 922 million. USD in June to finance the acquisition of US-based WGL Holdings Inc. AltaGas reduces its annual share by 56 per cent. to 96 cents per common share.

Apple Inc. said on Thursday that it would invest US $ 1 billion to build another campus in North Austin, Tex., and another $ 10 billion for new data centers over the next five years as it aims to create 20,000 jobs in the United States.

Soda can maker Ball Corp. said it would sell its packaging for beverage packaging in China for about $ 225 million. Ball, which forms cans for Coca-Cola Co and Molson Coors Brewing Co., plans to sell the facilities of Chinese metal packaging company ORG Technology Co.

Opponents of Enbridge Energys proposed line 3-oil pipeline replacement can show their attention to fighting the project on other fronts as a Minnesota Regulatory Panel is preparing to take one of its final steps to let it move on. The Public Utilities Commission on Thursday was scheduled to discuss petitions of environmental and tribal groups to the panel to review its decision in June to approve a route permit for the line across northern Minnesota. These opponents acknowledge that they have little hopes when the Commission earlier in this month swiftly and unanimously rejected their petitions to review the project's needs certificate.

Councilors in Toronto are required to discuss whether you allow retail stores in Canada's largest city. City staff recommends that advisors allow private-powered cannabis stores to operate in Toronto and say it would "have the unintended consequence of encouraging the illegal market." The question is on the agenda of today's Council meeting, one day after board members in two neighboring municipalities voted against having potteries within their limits. Advisors in Mississauga and Markham voted Wednesday to refrain from hosting privately-run cannabis retail stores that are expected to open over Ontario next spring. On Wednesday, Mississauga and Markham became the latest Ontario municipalities to opt out of cannabis stores.

Bombardier Inc.Chinese joint venture said on Thursday that it had won a contract of 453 million. US $ to supply 168 high-speed cars to the State China Railway Corp. (CRC). The win comes one day after it lost an order of $ 989 million in Canada when state-owned Via Rail chose Germany's Siemens AG to deliver new locomotives. The Chinese joint venture, Bombardier Sifang (Qingdao) Transport Ltd (BST), is 50 percent owned by the Chinese locomotive company CRRC Sifang Locomotive & Rolling Stock Co. Ltd.

Aurora Cannabis Inc. has signed an agreement to invest $ 10 million in High Tide Inc., a privately owned company with cannabis and cannabis accessories stores. Under the agreement, Aurora will hold bonds with an annual interest rate of 8.5 per cent. The bonds will also be able to convert to shares in High Tide at a price of 75 cents per share.

U.S. carrier Delta Air Lines Inc. forecast a decrease in fuel costs of USD 300 million. in 2019 and said that it expects robust air traffic to demand increased revenue for the year. Delta sees 2019 profits between US $ 6 and US $ 7 per share. At the high end of this range, it would be a 25 percent increase compared with what analysts expect in 2018, according to IBES data from refinance.

More reading:

Thursday's capital stock to see

Economic news

The original claim for US stateless unemployment fell 27,000 to a seasonally adjusted 206,000 for the week ending December 8, the US Labor Department said. Last week's decline in receivables was the largest since April 2015. The requirements hit 202,000 in mid-September, which was the lowest level since December 1969.

With Reuters and The Canadian Press


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