Mixed global equity markets and easing oil prices as investors await earnings and rate decisions
Equities showed mixed performance worldwide, with Canadian stocks influenced by earnings from Precision Drilling and Trican Well Service, while oil prices fell amid reduced Middle-East supply-shock concerns.
Global equity markets traded cautiously on Tuesday, reflecting a busy earnings week and upcoming central-bank rate decisions. Wall Street futures rose after North American markets closed higher the previous day, and TSX futures followed the positive sentiment. In Canada, investors focused on results from Precision Drilling Corp. and Trican Well Service Ltd., while Wall Street tracked earnings from companies such as Boeing, Coca-Cola, Visa and PayPal.
Analyst Ipek Ozkardeskaya of Swissquote noted that, despite a positive reaction to Anthropic’s IPO filing, “the concerns behind the latest AI selloff remain well intact,” adding that investors are wary of the large capital outlays required for AI infrastructure and the potential for rising leverage as interest rates climb.
In Europe, the STOXX 600 edged up 0.12%, the FTSE 100 fell 0.8%, the DAX gained 0.28% and the CAC 40 rose 0.39%. Asian markets saw Japan’s Nikkei close 1.73% higher, while Hong Kong’s Hang Seng slipped 0.73%.
Oil prices reversed lower in a choppy session, with Brent crude down 0.74% to US$115.00 a barrel and WTI falling 0.65% to US$101.10, as easing tensions over potential talks in Tehran reduced fears of a broader Middle East supply shock, though renewed Houthi attacks on Saudi Arabia kept risks present. “Prices remain elevated amid persistent geopolitical uncertainties,” said Sugandha Sachdeva, founder of SS WealthStreet, noting that profit-taking was also driven by hopes for a breakthrough in U.S.–Iran talks.
Spot gold slipped 0.4% to US$4,000.52 an ounce, and U.S. gold futures for December delivery fell 0.6% to US$4,014.40.
The Canadian dollar weakened slightly, trading at $1.4018 per U.S. dollar after moving within a range of 71.27 to 71.33 US cents. The U.S. dollar index rose 0.2% to 102.17, while the euro and British pound each slipped modestly. U.S. 10-year Treasury yields were down at 4.975%.
Upcoming U.S. economic releases include building permits, durable goods orders, the Case-Shiller Home Price Index, the FHFA House Price Index, the Conference Board Consumer Confidence Index and new home sales data.