Friday , November 27 2020

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Equities

US stock futures were flat early Wednesday after US President Donald Trump's EU address had not given traders a fresh market catalyst. Overseas, trading in Asia was subdued with Chinese markets closed for the New Year holiday, while MSCI's nationwide index was around 0.7%. In the early trade. In Canada, TSX futures were slightly changed with crude prices weaker following a report showing a jump in US oil stocks.

"Investors looking at the Union's address, addresses of a fresh commercial catalyst, were left disappointed," said Jasper Lawler, London Capital Group's research director. "The US dollar remained stable after President Trump's address. While the president touched on the Chinese trade relations and the budget, there was nothing new for traders to sink their teeth into."

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Mr. Lawler noted that Mr. Trump's focus was on illegal immigration and his efforts to build a wall along the southern border. "Those who had hoped that Trump would offer fresh trading news with China were left empty-handed," he said. "Specific evidence of real progress in the United States – China's trade negotiations are still lacking."

On Bay Street, the shares of Suncor Energy Inc. Some attention is likely to be given after the company had calculated a net loss of DKK 280 million. $ In the last three months of 2018. Based on each share, the deficit amounted to 18 cents. In comparison, Suncor reported a profit of $ 1.38 billion. USD or 84 cents in the same three month period a year earlier. Suncor maintained this year's loss to a steep price rebate for Western Canadian crude oil. The results were released after Tuesday's end.

Elsewhere, cannabis producer Aphria Inc. Wednesday, it had rejected the US cannabis dealer Green Growth Brands Inc's hostile takeover bid and said it was underestimating the company. The share deal last month followed a previous approach in December and valued the company at $ 2.35 billion.

On Wall Street, shares in Tesla Inc. down in front of North American open after the company said it was again cutting the price of its Model 3 sedan. The price decline, the second this year, came after Tesla lost a tax credit that helped make its cars more affordable to US buyers. The latest cut leaves the starting price for Model 3 at the blades starting price of US $ 42,900.

US earnings due to Wednesday include General Motors, Toyota and Spotify.

Overseas, Asian stocks are progressively higher with Japan's Nikkei progress 0.14 percent. The wider Topix slides 0.05 percent.

In Europe, the markets were mixed in morning trading after a weaker start. The pan-European Stoxx 600 broke through to trade at 0.11%. Despite a draw from bank shares following BNP Paribas, France's largest lender, lowering profits and revenue growth in 2020 after weaker financial markets, revenue fell in the last quarter.

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Britain's FTSE 100 edged up 0.03 percent. France's CAC 40 fell 0.21%, and Germany's DAX was 0.47%.

commodities

Raw prices were weaker on the way to the opening clock with a build-up of US inventories with an emphasis on emotions. Brent crude oil slipped below US $ 62 in the beginning and had a US $ 61.05 to US $ 62.13 day interval. The West Texas Intermediate was also weaker and had a range so far of US $ 52.86 to US $ 53.85.

At the end of Tuesday, the US crude oil institute rose raw material stocks by 2.5 million barrels last week. Analysts had expected an increase in inventories closer to the market for 2 million barrels. The API numbers will be followed Wednesday morning with several official numbers from the US Energy Information Agency. These figures are expected to show an increase in stocks of 900,000 barrels.

In an early note, OANDA analyst Craig Erlam noted that prices had paired some of the losses after Tuesday's report. "The figure was only slightly higher than analysts' expectations, and much of the downside to raw was before the release, which, unless it was in anticipation of a higher heading, would indicate that traders were unaffected by the increase," he said.

What might be for the markets, he said, the report contained the third consecutive increase in stock, which is expected to be confirmed by the EIA report. "But with OPEC and its allies trying to gradually reduce stock and US oil rigs falling in this low-cost environment, this downward pressure on the WTI and Brent cannot last," he said. "A significant break in important resistance – $ 55 and $ 65 respectively – can still elude us, but I still don't see much appetite for the prices to break in the other direction."

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In other commodities, gold prices were slightly changed despite a firmer US dollar. Spot gold was 0.1 per cent. Lower at US $ 1313.39 per ounce early in the morning. US gold futures also dropped 0.1 percent at US $ 1,317.30 per ounce.

"There is a lack of direction in the market and the mood is neutral. The market wants more clarity on Brexit and the US-China trade negotiations," analyst Georgette Boele, ABN AMRO, told Reuters.

Silver prices fell below 0.5 per cent. US $ 15.76 per Ounce and platinum decreased 0.2%. For US $ 814.57.

Currencies and bonds

The Canadian dollar continued to lower the trend overnight toward the lower end of the day range from 75.71 US cents to 76.19 US cents, as its US counterpart was stuck in the wake of few surprises at the EU address. Moving oil prices after US stock reports also put pressure on the Canadian currency.

For loonie, today's events are inviting morning commentary from the bank in Canada's Deputy Minister Timothy Lane, talking about & quot; Canadian approach to foreign reserve management and building permit data from Statistics Canada. (Statistics Canada said building permits rose 6% in December, topping market forecasts which required an increase of about 1% Loonie pared some of its losses after the release.) The week's key event is Friday's job report that could offer Bank of Canada guidance & # 39; s next move of interest. RBC said in a report that it expects employment to rise by about 5,000 new jobs in January after December 7, 800 increase. Unemployment is seen checked higher to 5.7 per cent, from 5.6 per cent.

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In other currencies, US dollars held close to a two-week high against a group of currencies, as markets looked past the EU state's address to focus on monetary policy issues.

"Markets are becoming more and more sensitive to the outlook for monetary policy, and any shift or change in thinking can trigger big moves," said Thu Lan Nguyen, a forex strategist at Commerzbank in Frankfurt.

The Australian dollar was in the meantime among the big losers, which fell 1.5%. To 71.33 US cents, as the country's central bank opened the door for a possible lowering, marking a sharp shift away from the previous tightening bias.

Stocks set to see action

Shares of Walt Disney Co. was higher in premarket trading after the company topped Wall Street forecasts with its latest results. For the first quarter ending in December, Disney reported an adjusted earnings per share. Share of $ 1.84. Analysts had on average expected US $ 1.55, according to I / B / E / S data from Refinitiv. The results in the last quarter were lifted from strong business in Disney's theme parks and growth on its ABC network.

Shares of General Motors Co. was more than 4 per cent. in premarket trading, after the automaker said it fluctuated to quarterly earnings from a year past losses, as profitable pickup trucks and crossovers in the US market combined with cost savings helped offset lower overall sales. GM reported a quarterly net revenue of 2.1 billion. USD or $ 1.40 per Share, against a fall of DKK 5.2 billion. USD or $ 3.65 per. Stock the previous year. Only one-off items, GM earned $ 1.43 a share. Analysts asked by Refinitiv IBES had expected earnings of $ 1.22.

Globe Brent Jang reports that a TransCanada Corp. Deputy Chairman, who led Coastal GasLink for almost seven years, has warned that the pipeline project of $ 6.2 billion The USD will be in danger of being canceled unless workers have unimpeded access over an original protest camp. "The inability to construct part of the project means the whole project will cease," Rick Gateman said in a statement in the B.C. Supreme Court. Coastal GasLink, owned by Calgary-based TransCanada, is seeking a permanent injunction to prevent protesters from reviving a blockade on the Morice River Bridge in B.C. Internal.

Siemens and AlstomThe plan to set up a European railroad master collapsed on Wednesday after the EU regulators rejected the agreement and urged Germany and France to request a review of EU competition policy to better cope with global challenges. Alstom said veto was a clear downturn for Europe's industry, while Siemens CEO Joe Kaeser said Europe had to reform its industrial policy to help its companies compete.

Ontario's top securities regulator has dismissed an insider dealing case Amaya Inc. $ 4.9 billion acquisition of the owner of PokerStars, who completed a multiyear probe accusing four people of illegal behavior. On Tuesday, the Ontario Securities Commission rejected its case against CIBC Investment Advisor Frank Soave after concluding that he did not know that the person who gave him the tip was able to have knowledge in the world, The Globe's Tim Kiladze reports.

Eli Lilly and Co shares fell more than 2 per cent. in premarket trade after the pharmaceutical company cut the 2019 profit and revenue forecast, citing the recent trial error in its conditionally approved cancer drug Lartruvo and the costs associated with the pending acquisition of Loxo Oncology. The company said it now expects 2019 adjusted earnings per share. Stocks between $ 5.55 and $ 5.65 compared to a previous $ 5.90 forecast at $ 6.00. It is estimated that revenues will be between € 25.1 billion USD and 25.6 billion. USD compared to a previous forecast of 25.3 billion. $ 25.8 billion

Music streaming service Spotify reported an unexpected fourth-quarter operating profit on Wednesday and sales growth similar to expectations, but it said it saw a loss of 200-360 million in 2019. Spotify accounted for a quarterly operating profit of 94 million ($ 107 million) against an average forecast of a loss of 16 million euros in a Reuters survey by analysts and one year ago losses of 87 million euros.

The New York Times Co. reported a 4 per cent increase in fourth quarter revenue when it enrolled 265,000 new digital subscribers. The net profit attributable to the shareholders was USD 55.2 million. Or 33 US cents pr. Share from a net loss of USD 56.8 million. Or 35 US cents per. Share the year before when the company reserved one-off fees in connection with the tax reform and pension settlements. Total income increased to USD 502.7 million. From US $ 484.1 million The year before, which included an extra week.

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Financial news

The value of Canadian building permits increased by 6%. To $ 8.8 billion in December, statistics say Canada. The market had expected a decline of approx. 1 pct. Statscan said December market fourth consecutive monthly increase in permits. The winnings were mostly due to building plans for multi-family units and commercial buildings.

The US Commerce Department said the US trade deficit fell 11.5%. To $ 49.3 billion USD. The trade gap had risen for five straight months. The October figures were revised to show the deficit at $ 55.7 billion. USD instead of the previously reported $ 55.5 billion USD.

(10 AM ET) Canada's Ivey PMI for January.

With Reuters and The Canadian Press

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