Tuesday , January 26 2021

Before the bell: What every Canadian investor should know today

Wall Street futures fell earlier on Thursday following further hints that the trade between the United States and China is easing. Shares in the world rose to a third meeting as the European Central Bank held stable rates and reaffirmed the end of the quantitative easing program. In this country, Bay Street futures grew with crude prices relatively steady following data on a decline in inventories in the US last week.

European markets began the day mixed with the ECB's decision. Asian markets finished higher after a positive day on Wall Street on Tuesday. Trade continues to be at the forefront. A Reuters report reported that Chinese state-owned companies bought more than 1.5 million tons of soybeans, marking the first major acquisition in six months, helping to shore up sentiment, and are seen as supporting positive developments earlier this month when US President Donald Rumsfeld Trump met with the Chinese leader Shi Jingping and hit a 90-day trade break.

"Reports that China is doing well on promises made with Trump in the G20 are helping the markets to be less pessimistic and slower on the USS – Chinese relations," said J. Lawler, head of research at the London Capital Group. "And it increases the expectations of a trade deal to be reached within the 90-day time frame."

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However, he said investors continue to warn that "they saw progress only before the relationship suddenly turned negative," and that caution was expressed at a mixed start in Europe after US markets closed positive but also high, "he said.

At the European Central Bank, as expected, the central bank said it would end its bond purchase program at the end of the month, but would continue to invest the money from specialized bonds "over a long period of time, the central bank's key interest rates, As long as it is necessary. "The Bank launched its quantitative easing program four years ago to support economic growth in the euro zone and to strengthen inflation.The ECB also maintained its key interest rate and said it expects the ECB rate to" stay at the level At least until the summer of 2019. "

On Bay Street, investors get some profits. Sobeys-Owner Empire Inc. reported its latest results before the start of trading, with the retailer reporting a adjusted earnings per share of 40 cents, compared to 27 cents a year earlier, and last quarter beating analysts' forecasts of a 32 cents per share. Sales of stores, excluding fuel sales, rose by 2.5%, not including pharmacy sales, identical store sales rose by 3%.

Davidstea Inc and Transat AT Inc. also report.

Wall Street will gain profits after Bell from Costco Wholesale Adobe Systems Inc.

Overseas, European markets were mixed with pan-European STOXX 600 spreads 0.05 percent, the FTSE 100 index fell by 0.14 percent, the DAX in Germany rose 0.23 percent and the French CAC added 0.04 percent.

In Asia, the markets finished higher on easing trade concerns. The Shanghai Composite Index rose 1.23 percent. Hong Heng of Seng gained 1.29 percent. In Japan, the Nikkei added 0.99%.

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The price of crude oil changed slightly before the opening of North America with a report showing a US inventory cut that helped offset global concerns about oversupply of the market Brent crude traded in a range of $ 59.70 to $ 60.59. $ 50.78 for US $ 51.57.

Data released Tuesday by the US Energy Administration fell 1.2 million barrels last week. This was below market expectations, which was called for a 3 million barrel drop, but it also came on the heels of a similar report from the American Petroleum Institute earlier this week, which also showed a draw in inventories.

Meanwhile, the Paris-based International Energy Agency (IEA) expects global crude supplies to fall sooner than expected by reducing planned production by OPEC and its allies and Alberta's decision to cut production in the new year. Said it expected the world oil market to remain in surplus next year, but said in its latest report that it now expects to see a deficit in the second quarter if OPEC agrees to cut production by 1.2 million barrels a day.

"Oil prices stabilized overnight, under pressure from high inventories, but were supported by a pull in US oil inventories and signs that the Sino-US trade war could ease," says Dean Popwell. "The global supply of" black matter "exceeded demand in the last two quarters, inflated inventory and pushed oil prices to its lowest level in 12 months at the end of November.

In other commodities, gold prices slid when the US dollar stabilized and world stocks rose. Spot gold fell 0.3 percent to $ 1,241.50 an ounce by mid-morning in Europe, while US gold futures fell 0.3 percent at $ 1,245.80 an ounce.

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"With the rebound stocks this week, gold fell slightly favorably as traders undo their gambling and safe haven," said Fawad Razaqzada, an analyst with Forex.com, Reuters.

Money prices also fell modestly while platinum prices are higher.


The Canadian dollar weakened slightly as its US counterpart faced the currency basket. The Canadian day range so far is 74.79 US cents to 74.94 US cents. Last week, the Canadian dollar hit its lowest level in 18 months after the Reserve Bank of Canada hinted that interest rates may not rise as fast as the market had expected in the new year. However, this week, the Canadian dollar saw support for some crude oil prices. Elsa Lignos, global managing director of RBC's FX strategy, also said in an early comment that a stock market rally helped boost sentiment.

In other currencies, the US dollar index fell 0.1% at 96.945. The euro was slightly higher after Italy said it would cut its budget spending, heading for a demonstration with the EU. The euro rose 0.2% to $ 1.1394. The single currency was mostly traded at $ 1.16 and $ 1.12 since August, according to Reuters data.

"Despite the markets having a lot price in the way of ECB hikes in recent weeks, recent comments from [ECB chief economist] Peter Ferre and President Draghi suggest that the ECB is ready to "test" the weakness of Eurozone growth in the third quarter, "says Ligonos." The ECB continues to reassure itself that the resilience of domestic demand means that the euro area should be able to generate growth Around the trend in the coming years, enough against the tightening labor market to justify normalization of policy. "

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The British Pound rallied for a vote of confidence for Prime Minister Theresa May, but held relatively stable after winning the vote and went to a fairly narrow margin following the victory, as strong opposition to the Brexit agreement remained.

In bonds, the yield on a 10-year note in the US was 2.897% lower. The 30-year yield was also 3.14% lower.

Stocks set to see action

ALTAGAS LTD Cut its annual dividend and said it would sell its indirect stake in hydroelectric projects in northwest British Columbia for about $ 319 billion. The company's plan to sell its 55 percent stake after the sale of 35 percent per stake in facilities for $ 922 million in June to finance the acquisition of US-based WGL Holdings Inc. The annual AltaGas cut its share by 56 percent to 96 cents per common share.

Apple Inc. Said on Thursday it would invest $ 1 billion to build another campus in North Austin, Texas, and another $ 10 billion for new data centers over the next five years as it aims to create 20,000 jobs in the United States.

Soda Can Maker Bull Corp. Said that it would sell its beverage and packaging facilities in China for about $ 225 million. Ball, making cans for Coca-Cola Co and Molson Coors Cook Co, plans to sell the facilities to Chinese metal packaging company ORG Technology Co.,

Opponents Enbridge EnergyOf the proposed 3-line crude oil pipeline may turn their attention to fighting the project on other fronts as the Minnesota regulator panel is preparing to take one of its final steps to allow it to continue. The Public Utilities Committee on Thursday was to discuss petitions by environmental and tribal groups to reconsider panel His decision in June to approve a road permit for the line across northern Minnesota. These opponents recognize that they hope for a little hope, as the committee earlier this month quickly and unanimously rejected their petitions to reconsider the project's need certificate.

Councils in Toronto are set to discuss whether to allow retail and pot shops in Canada's largest city. The city team recommends that council members allow operating stores in the private darkness to operate in Toronto, saying that "will be an unintended consequence of encouraging the illegal market." The issue is on the agenda of today's board of directors, the day after council members in the two neighboring authorities voted against the porter shops within their borders. Board members in Mississauga and Markham voted on Wednesday to opt out of privately operated retail cannabis stores that are due to open in Ontario next spring. On Wednesday, Mississauga and Markham became the last municipalities in Ontario to abolish the cannabis shops.

Bombardier Inc.China's joint venture said on Thursday it won a $ 453 million contract in the US to provide 168 fast-train cars to a state-owned China Railway Corp. (CRC) victory comes a day after losing a $ 989 million train order in Canada, The state has chosen the German company Siemens to supply new locomotives.The Chinese joint venture, Bombardier Sipang (Qingdao) Transportation Ltd. (BST), is 50 percent owned by the Chinese locomotive company CRRC Sifang Locomotive & Rolling Stock Co Ltd "M

Aurora Cannabis Ltd. Has signed an agreement to invest $ 10 million in High Tide Inc., a private company with cannabis and cannabis. According to the agreement, Aurora will hold bonds bearing annual interest of 8.5%. The bonds will be convertible into shares at a price of 75 cents per share.

Supplier USA Delta Airlines Inc Expects a $ 300 million drop in fuel costs to 2019 and noted that it expects a stable demand for air travel to increase profits per year. Delta sees a profit of 2019 between $ 6 and $ 7 a share. At the high end of this range, it will increase by 25 percent on what analysts expect for 2018, according to IBES data by Refinitiv.

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Thursday's stock is small to watch

Economic News

Initial claims for state unemployment fell to 27,000, seasonally adjusted, to 206,000 in the week ending Dec. 8, the US Department of Labor said. The fall in claims last week was the biggest since April 2015. Claims hit 202,000 in mid-September, the lowest since December 1969.

With Reuters and the Canadian press

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