Global equities rise as AI earnings boost sentiment, oil rebounds on geopolitical news
Wall Street futures and TSX futures moved higher on Wednesday, driven by strong AI-related earnings and a rise in oil prices after comments from Iran’s security chief.
Global equity markets advanced on Wednesday morning as investors shifted focus from expectations of further Federal Reserve rate hikes to recent AI-related earnings. CoreWeave reported strong results, prompting a rise in Wall Street futures and TSX futures.
In Canada, companies reporting earnings included Power Corp. of Canada, Franco-Nevada Corp., CAE Inc., CGI Inc. and Cargojet Inc. Alberto Conca, chief investment officer at Swiss wealth manager LFG+ZEST, said, \"The results confirm that demand for AI is still very strong. However, CoreWeave still faces significant questions over the sustainability of its debt burden.\"
European markets followed the upbeat tone, with the pan-European STOXX 600 up 0.37%, the FTSE 100 gaining 0.40%, Germany’s DAX rising 0.81% and France’s CAC 40 advancing 0.39%. In Asia, Japan’s Nikkei closed 1.31% higher while Hong Kong’s Hang Seng slipped 0.98%.
Oil prices recovered from two-month lows after Iran’s security chief indicated Tehran would not permit any enriched nuclear material to leave the country. Brent futures rose 1.67% to US$93.02 a barrel and West Texas Intermediate increased 0.94% to US$86.85. UBS analyst Giovanni Staunovo noted that oil prices are being supported by fading hopes of an imminent de-escalation.
Spot gold climbed 0.6% to US$4,055 an ounce after a near 3% drop the previous day, while U.S. gold futures for December delivery rose 0.8% to US$4,063.20.
The Canadian dollar weakened slightly, trading at $1.4233 per U.S. dollar, within a range of 70.25 to 70.60 U.S. cents. The U.S. dollar index rose 0.28% to 102.52. The euro fell 0.29% to US$1.1135 and the British pound slipped 0.25% to US$1.3310. North American bond markets remained closed for a holiday.