AI concerns and U.S. midterms pressure global markets as Canadian stocks dip
Global equities fell amid AI-related worries and the U.S. midterm election, while Canadian dollar gains and higher oil prices marked the morning trade.
Global stock markets slipped on Tuesday as investors weighed artificial-intelligence concerns and the outcome of the U.S. midterm election. Wall Street futures were mixed, reflecting recent weakness in big-tech earnings and aggressive capital-spending plans, which have heightened scrutiny of the election results.
TSX futures traded in negative territory after Canada’s main index closed higher the previous day. Canadian investors focused on earnings from Thomson Reuters, Shopify, Suncor Energy, Fortis, Fairfax Financial, Intact Financial, Ovintiv and TransAlta, while Wall Street watched reports from Advanced Micro Devices, Amgen, Arista Networks, Prudential Financial, Yum Brands and Pfizer.
Polymarket traders estimated a 77 % probability that Democrats will control both chambers of Congress, a scenario that could bring stricter AI oversight and broader corporate regulation. > "In the case of a full blue sweep, I would expect some populist measures against AI. The narrative against data centres would get a tailwind," said Alexander Lis, chief investment officer at Social Discovery Ventures.
European markets fell, with the STOXX 600 down 0.45 %, the FTSE 100 down 0.65 %, Germany’s DAX down 0.7 % and France’s CAC 40 down 0.24 %. In Asia, Hong Kong’s Hang Seng rose 0.57 % while Japan’s Nikkei was closed for a holiday.
Oil prices rose after an Iranian official indicated that a peace deal remained distant and the United States struck Iran’s Qeshm Island, raising concerns about supply disruptions. Brent crude gained 0.29 % to US$105.10 a barrel and WTI rose 0.72 % to US$97.15. > "For now, the risk of supply disruptions continues to provide a floor for prices, while uncertainty over Washington’s next move, political developments and traders’ reluctance to carry aggressive positions are capping the upside," said Priyanka Sachdeva, head of market insight at Phillip Nova.
Spot gold slipped 1.1 % to US$3,903.48 an ounce, and December gold futures fell 1.4 %.
The Canadian dollar strengthened, trading at $1.3981 per U.S. dollar, up about 1.64 % over the past month. The U.S. dollar index edged higher to 101.86, while the euro and British pound each slipped marginally.
U.S. Treasury yields rose, with the 10-year note yielding 4.935 %.
Upcoming data includes the U.S. Job Openings and Labor Turnover Survey and factory orders for September, as well as testimony from Bank of Canada Governor Tiff Macklem and senior deputy Carolyn Rogers before the House Standing Committee on Finance.