Sunday , October 2 2022

Before the clock: What every Canadian investor needs to know today



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Equities

The bank's revenue is at the forefront of Canada on Tuesday with the Bank of Nova Scotia kicking off the profit period for the country's largest lender. In front of the opening block, Bay Street futures were somewhat lower, track weakness was seen on world markets overnight. At Wall Street, futures were also in red with trade tensions that weighed after US President Donald Trump stated that he expected to continue raising the $ 200 billion tariffs in Chinese imports to 25 percent from the current 10 percent.

The comments also gained global market optimization seen early in the week with MSCI's country index, which follows shares in 47 countries and increases by 0.1 percent overnight.

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"The stock markets in Asia overnight were largely a bit higher despite the warnings of President Trump that customers could face a 10 percent charge on iPhones and laptops imported from China," said CMC Market analyst David Madden. Trump also threatened to raise the $ 200 billion duty rate for Chinese imports to 25 percent, from 10 percent, and warned to introduce additional charges. This can only happen before the G20 summit, but Trump is known to be unpredictable. "

Mr Trump's last comments were made in an interview with The Wall Street Journal and preceded a meeting of US President and Chinese President Xi Jinping at the G20 summit later this week in Argentina. Apple shares were down almost 2 percent in premarket trading on proposals iPhones customer met tariffs.

On Bay Street, Scotiabank was the first of Canada's major banks to report its latest results and reported a jump in fourth quarter earnings. The bank reported a profit of $ 2.27 billion, or $ 1.71 per share, from $ 2.07 billion or $ 1.64 a year earlier. The Nova Scotia Bank reported adjusted earnings per share of $ 1.77, an increase of $ 1.65 a year earlier. Analysts had been looking for adjusted earnings per share of $ 1.79, according to IBES data from Refinitiv. The bank also said it plans to leave nine countries in the Caribbean because it focuses its activities in the region.

The revenue is also due to the Quebec dealer Alimentation Couche-Tard Inc. after the next.

On Wall Street, a number of Federal Reserve officials are planning to talk. Bold Vice President Richard Clarida delivers the main address at a conference in New York. Three Fed presidents are also scheduled to participate in a panel discussion later in the day. Later this week, Fed chairman Jerome Powell is expected to comment on an event at the Economic Club of New York.

Foreign trade barriers struck early in Europe and the pan-European STOXX 600 fell 0.38 percent. London's FTSE 100 was down 0.27 percent. Shares of travel companies Thomas Cook dropped 33 percent openly after lowering its profit forecast and abandoning dividends. In Germany, DAX reduced 0.36 percent. France's CAC 40 fell 0.27 percent.

Asian markets ended most positively with Japan's Nikkei and increased by 0.64 percent. The wider Topix rose 0.14 percent. Hong Kong's Hang Seng fell by 0.17 percent while the Shanghai Composite Index dropped by 0.04 percent.

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Merchandise

Raw prices were stable to modestly higher but still close to year-end, as rising production compensated somewhat by the expectation that OPEC and its allies would cut production at a meeting next month. At the last check, Brent held crude over US $ 60 and had a range of US $ 59.50 to US $ 61.15 for the day. The West Texas Intermediate was also positive and had a spread of US $ 50.70 to US $ 51.93.

On Monday, prices recovered about 3 percent after falling more than 6 percent on Friday. However, this week's profits were due to reports that Saudi Arabia increased its production in November to record 11.1 million barrels of output per day to 11.3 million barrels per day.

"Saudi Arabia's record production is the last thing this market needs right now," Jasper Lawler, research director at London Capital Group, said in a note. "Over-supply associations combined with slower demand security have seen an oil price correction evolve into an oil plan of epic proportions. We return to today's past, where the next OPEC meeting is reviewed at an intensity level not seen since 2016."

The next OPEC meeting is scheduled for December 6th. Saudi Arabia has been among the producers who are pushing for a production cut.

New US inventory data is also due later on Tuesday and may affect prices.

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"The American Petroleum Institute (API) inventory number can later affect Brent and WTI further misery if another significant building is reported, although I'm again questioning if sales are a bit excessive in the circumstances" OANDA analyst Craig Erlam said. "The market seems to be pricing in either no production decline or only a small one, which could lead to oil prices subject to a short press."

Gold prices, meanwhile, moved at its lowest level in a week, because Mr Trump's comments on tariffs pulled the dollar higher. Spot gold inched 0.1 percent higher to $ 1,223.75 per ounce in morning trade in Europe, after turning its lowest since November 19 to $ 1,219.04. US gold terminals increased by 0.1 percent to US $ 1,233.70 per ounce.

Currencies and bonds

The Canadian dollar was slightly changed before the North American opening, when crude prices stood and the US dollar touched its best level in two weeks against a group of world currencies. Today's assortment on loonien so far is 75.33 US cents to 75.54 US cents.

Elsa Lignos, RBC's global head of foreign exchange strategy, noted that "no major data extensions are scheduled for Friday's Q3 Q3, leaving [the Canadian dollar] to track the risk background and wider movements in [U.S. dollar] for short-term direction. "RBC forecasts annual GDP growth in the third quarter of around 2 percent.

US dollars increased from Mr Trump's comments that it was "highly unlikely" the US would hold an increase in tariffs on Chinese goods. The US dollar index, which measures the dollar against six other major currencies, rose 0.2 percent to 97.28, the best level of almost two weeks. Reuters notes that the greenback has advanced during the previous two sessions, as investors seek safe havens over the power of the global economy.

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In bonds, US exchanges as traders dropped comments from Fed officials later in the session. The return on the 10-year note was lower at 3,059 percent. The return on the 30-year note was also lower at 3,311 percent.

Layers are set to see action

Thomas Cook lost a third of its value on Tuesday after the holiday operator lowered its second-rate earnings guidance for two months and canceled its dividend, burned by the effects of a hot British summer and one-time charges. The world's oldest travel company, Thomas Cook, has been hurt by the heat wave that seized Northern Europe this year, which discourages holidaymakers from booking lucrative last minute offers and shed their shares down 70 percent in 12 months. On Tuesday, the market updated the market two days before the schedule to reduce its underlying operating profit again, this time by 11 percent. It said that it had not violated the terms of its loan agreements and would continue to invest in the business. The shares in the company initially fell 33 percent at open in London.

Tesla Inc.Car sales in China dropped 70 percent last month a year ago, told the country's car association for cars to Reuters on Tuesday and underscore how the US and China trafficking industry is hurting the American electric car maker. An official from the China Passenger Car Association said data from the industry's body showed that Tesla sold only 211 cars on the world's largest car market in October. Reuters said that Tesla did not respond to repeated talks and written requests for comments on Tuesday. The electric car manufacturer, who imports all the cars it sells in China, said in October that the tariff increases on auto imports hampered their sales there. In July, Beijing increased import prices of US cars to 40 percent among the worsening trade relations with the United States.

There has been a dramatic increase in the number of complaints raised against Canada's telecommunications providers according to an annual public-private private sector that has been allocated to resolve disputes brought by customers who have not been able to receive satisfaction directly from the supplier. The 14 272 complaints made by Canadian telecom and television customers during the 2017-18 period increased by 57 percent compared with the previous year, while the total number of problems they raised increased by 67 percent to 30,734. The Commission for Complaints on Telecom Television Services say in its report for the 12 months from August 1, 2017 to July 31, 2018.

The world's Andrew Willis reports that two of Greece's largest financial institutions have announced merger plans on Monday in an agreement that better positions major shareholders Fairfax Financial Holdings Ltd. for a recovery in the Greek economy. Eurobank, the third largest lender in Greece, plans to acquire property company Grivalia Properties in a stock trading transaction valued at $ 866 million. The deal significantly increases the bank's capital and raises the share price of both listed companies on Monday. The Eurobank share increased by 23.8 percent to 58.5 euros cents on the transaction news, while the Grivalia share jumped 10.6 percent to 7.93 euros.

Maple Leaf Foods Inc. announced plans Monday to build a 660 million poultry processing plant in London, Ontario, which is expected to meet a growing appetite for meals that deal with high quality chicken products. Mississauga-based Maple Leaf is building a 640,000 square foot plant in southern Ontario as CEO Michael McCain said, "As far as we know … it will be the most technologically advanced facility in the world."

United Technologies Corp. said on Monday that it would differ in three companies consisting of aviation, elevators and construction departments, making it the latest industrial conglomerate to drive such an eruption. The decision follows the completion of this month in United Technologies acquisition of avionics manufacturer Rockwell Collins, which gave $ 30 million to space operations to be a stand-alone company.

More reading:

Tuesday's small capital stock to watch

Economic news

(9 AM ET) US S & P Case-Shiller home price index (20 city) for September. Street expects an increase of 0.3 percent from August and 5.3 percent last year.

(9 AM ET) US FHFA House Price Index for September. Consensus is an increase of 0.4 percent from August and 5.9 percent last year.

(10 a.m. ET) United States Conference Council Consumer confidence index for November. Consensus is a reading of 136.1, down from 137.9 in October.

With Reuters and The Canadian Press

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