Mixed global markets as investors await Apple earnings and oil prices fall
Global equities showed mixed performance on Monday, with investors focusing on upcoming Apple results and oil prices dropping after talks between Iranian and Qatari mediators.
Global equity markets were mixed on Monday as investors looked ahead to Apple’s earnings report, hoping it might ease concerns over high AI-related cash burn. In North America, Wall Street futures rose after Friday’s market declines, and TSX futures edged higher. Canadian investors received earnings updates from RioCan REIT, Capital Power Corp., Gibson Energy Inc., First Capital REIT and Toromont Industries Ltd., while Wall Street focused on results from Apple, Palantir, Marriott International, Estée Lauder, Fox Corp. and Loews Corp.
"Earnings results have underscored the fundamental challenge facing equity investors — earnings growth is strong, but it is no longer accelerating," wrote Ben Snider, Goldman’s chief U.S. equity strategist. "Similarly, Q3 results support our view that AI investment spending will continue to grow but that the growth rate of AI capex is peaking."
In Europe, the STOXX 600 slipped 0.25%, the FTSE 100 fell 0.19%, the DAX declined 0.14% and the CAC 40 edged up 0.04%. In Asia, Japan’s Nikkei closed 0.33% lower while Hong Kong’s Hang Seng rose 0.42%.
Oil prices dropped sharply after Iranian and Qatari officials continued talks on a potential deal to end the U.S.-Israeli conflict over Iran, raising hopes of reduced supply disruptions. Brent crude fell nearly 4% to US$108.90 a barrel and WTI slipped 4.25% to US$99.70. An official briefed on the Doha talks said Iranian negotiators left the meeting without difficulty, and oil broker Tamas Varga said the new month brought renewed hopes of a breakthrough.
Spot gold rose 0.7% to US$3,902.03 an ounce after reaching a one-year low in the previous session, while U.S. gold futures for December gained 0.3% to US$3,911.50.
The Canadian dollar weakened, trading at $1.3978 per U.S. dollar after ranging between 71.48 and 71.68 US cents. The U.S. dollar index fell 0.28% to 101.60, while the euro and British pound rose 0.47% and 0.19% respectively. U.S. 10-year Treasury yields were down at 4.925%.
Upcoming economic releases include Canadian and U.S. manufacturing PMIs, U.S. ISM manufacturing data, construction spending, senior loan opinion surveys, and auto sales for October.