Sunday , April 18 2021

Before the call: what each Canadian investor needs to know today

Wall Street futures began Thursday early to further recall that trade tensions between the United States and China are shrinking. Global stocks increased by the third session, with the European Central Bank achieving stable rates and ending the quantitative reduction program. In this country, Bay Street's futures contracts rose relative to crude prices, relatively stable, indicating a fall in US stocks last week.

Major European markets began the day before the ECB's decision. Asian markets rose on Tuesday after a positive day on Wall Street. Trade is still at the forefront. Reuters reports that China's state-owned companies have bought more than 1.5 million tonnes of soybeans, which for the first six months were the first major purchase, helped to strengthen the mood. Purchases are considered to be positive affairers at the beginning of this month when US President Donald Trump met with China's leader Xi Jinping and won 90-day trade with a ceasefire.

"The reports that China has achieved the will in Gramwah with a brief one is to help markets become slowly less pessimistic than US-China relations," said Jaspers Lawlers, London Capital Group's research director. "And it increases the expectation that a trade deal will be reached within 90 days."

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However, he said investors are still cautious, because "they have only seen progress in their relations to suddenly turn to the worst. This precaution is reflected in Europe after a mixed start after the US markets are closed positively but in good condition," he said. .

As for the ECB, the central bank, as expected, announced that at the end of this month it will end its crisis-bailout program, but will continue to invest money from the maturity, "in the longer term after the date it starts to raise the key ECB interest rates and in any case as long as it is needed. "The Bank launched a quantitative reduction program four years ago to support economic growth in the euro area and strengthen inflation. The ECB also maintained its key rate and expressed its hope that the key ECB interest rates "will remain at their current level until at least the summer of 2019".

Investors in the street are receiving a small profit. Sobeys Owner of Empire Co. Ltd announced its latest results before commencing trading. In the last quarter of the year, the grocery trade company adjusted earnings per share by 40 cents, up from 27 cents in the prior year. The latest quarter exceeded analysts' expectations, which demanded adjusting earnings per share by about 32 cents. The sales of one store – without the sale of fuel – went up by 2.5%. Apart from the sale of pharmacies, sales volume in one store was even 3%.

Davidstea Inc. and Transat AT Inc. also report.

Wall Street will receive revenue from Costco Wholesale and Adobe Systems Inc.

In overseas countries, European markets were confused with the European-wide STOXX 600, which was 0.05 percent. British FTSE 100 fell by 0.14 percent. The German DAX rose by 0.23 percent, while the French CAC rose by 0.04 percent.

In Asia, markets have been the most easiest to trade. The Shanghai Composite Index grew by 1.23 percent. Hong Kong Hang Seng won 1.29 percent. In Japan Nikkei added 0.99 percent.

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Raw materials

Together with North American open prices, total prices changed slightly, and the report on US inventory increase helped to offset global worries about market surpluses. Brent crude sales amounted to USD 59.70 to USD 60.59. West Texas Intermediate rates were $ 50.78 to $ 51.57.

The figures released by the US Energy Information Administration fell by 1.2 million barrels next week. It was lower than market expectations, which had called for a reduction of 3 million barrels, but it also came to a similar report from the American Petroleum Institute last week, which also showed stock depreciation.

At the same time, the Paris International Energy Agency predicts that global oil supplies could go into deficit earlier than expected, driven by the planned decline in production from OPEC and its allies, and Alberta's decision to cut production in the new year. In an earlier report, the IEA said it would expect the global oil market to remain in surplus, with a large share next year. However, in its latest report, the agency says it now expects to wait for a deficit in the second quarter if OPEC agrees to cut production by 1.2 million barrels per day.

"Oil prices have stabilized overnight, driven by pressure from large stocks, but backed by US oil stocks and signs that China-US trade warfare could make it easier," said OANDA analyst Dean Popplevels. "The global supply of black content has exceeded demand over the last two quarters, increasing stocks and pushing crude oil prices to its lowest level in 12 months at the end of November."

Gold prices fell in other commodities, as the US dollar stabilized and global stocks shifted. Spot gold in Europe dropped by 0.3 pct by midnight to US $ 1,241.50 an ounce, while US gold futures prices fell by 0.3 percent to US $ 1,245.80 per ounce.

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"The gold rebound in the week showed a slight decline as traders cut off their safe haven positions," analysts at Fawad Razaqzada told Reuters.

Silver prices were also slightly reduced, while platinum prices increased.


The Canadian dollar was slightly weaker as the US partner stabilized against the world's currency basket. The lava time range is currently 74.79 US Cents to 74.94 US Cents. Loonie reached the lowest level last month in 18 months after the Canadian Bank indicated that interest rates might not increase as fast as the market expected in the new year. However, this week, the Canadian dollar has seen support from more stringent crude prices. Elsa Lignos, RBC Global FX Strategy Leader, also announced early that the stock market rally has helped raise the senses.

In other currencies, the US dollar index dropped by 0.1 percent to 96,945. The euro was slightly higher after Italy said it would cut budget spending plans and move to the showdown with the European Union. The euro rose by 0.2 percent to $ 1,1394. According to Reuters, since August alone, the single currency has been traded to a large extent at $ 1.16 and $ 1.12.

"Despite the fact that markets that have significantly reduced prices in recent weeks have increased, recent comments suggest [ECB chief economist] Peter Praet and President Draghi have pointed out that the ECB is ready to "investigate" the lack of euro area growth in the third quarter, "said Ms Lignos." The ECB continues to convince itself that the flexibility of domestic demand means that the euro area should be able to generate growth in the coming years, into a tighter labor market to justify the normalization of the policy. "

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The British pound fought before the confidence vote in favor of Prime Minister Theresa Mayu, but after a successful ballot she won a relatively stable position and moved after a strong move after a strong resistance to the Brexitas agreement.

Bonds yielded US 10-year bond yields of less than 2,897 percent. The yield on 30-year Treasury bills was also lower than 3.14 percent.

Stocks for action

AltaGas Ltd reducing its annual dividends and announcing that it will sell its indirect holdings in hydroelectric projects in Northwestern British Columbia about about 370 billion. The company's plan to sell 55% of the stock follows from a 35% share sale facility of USD 922 million in June to fund its acquisition based on US-based WGL Holdings Inc. AltaGas reduced its year by dividing by 56 percent to 96 cents per ordinary share.

Apple Inc. that on Thursday it will invest $ 1 billion to build the second Campus North Austin, Tex in the next five years. and another $ 10 billion for new data centers, as the goal is to create 20,000 jobs in the United States.

Penalty can be made by the manufacturer Ball corp said he would sell his beverage packaging equipment in China at around $ 225 million. The Ball, which produces boxes for Coca-Cola Co and Molson Coors Brewing Co., plans to sell equipment for the Chinese metal packaging company ORG Technology Co

Opponents Enbridge EnergyThe proposed change of line 3 oil pipelines may focus on the fight against the project in other areas as the Minnesota Regulatory Group is about to take one of the last steps to continue. The Public Utilities Commission was scheduled to discuss petitions on environmental and tribal groups on Thursday to allow the commission to review its decision to approve the route to the line of licensure across the state of Minnesota in June. These opponents acknowledge that they have little hope, as the commission quickly and unanimously rejected their petitions to revise the design certificate as a matter of urgency at the beginning of this month.

Toronto advisers aim to discuss whether to allow retail banking in Canada's largest city. City officials advise advisers to allow privately managed cannabis shops to operate in Toronto, saying it would have unintended consequences for the promotion of the illicit market. This issue is on the agenda at today's council meeting, the day after advisers in two neighboring municipalities voted against the fact that bank shops are within their borders. Advisers from Mississauga and Markham voted on Wednesday to abandon the deployment of private retail cannabis shops that will be open all over Ontario next spring. On Wednesday, Mississauga and Markham became the latest Ontario municipality to abandon cannabis retail stores.

Bombardier Inc.The Chinese joint venture said on Thursday that it has earned a $ 453 million contract to supply China-owned China Railway Corp. (CRC) with 168 high-speed trains. The victory comes on the day after Canada lost $ 989 million in railroad contracts, when Via Rail's national rail station chose Germany's Siemens AG to supply new locomotives. China locomotive company CRRC Sifang Locomotive & Rolling Stock Co., Ltd. owns 50% of the Chinese joint venture Bombardier Sifang (Qingdao) Transportation Ltd (BST).

Aurora Cannabis Inc. has signed an agreement to invest $ 10 million in High Tide Inc., a private company with retail stores for cannabis and cannabis retailers. Under the agreement, Aurora will hold bonds with an annual interest rate of 8.5 percent. Receivables will also be converted into high-yield shares at a price of 75 cents per share.

US carrier Delta Air Lines Inc predicts a decrease in fuel costs by $ 300 million in 2019 and claims that there will be a high demand for air travel in order to increase annual profits. Delta believes that the profit of 2019 from USD 6 to USD 7 per share. According to Refinitiv IBES, the highest level of that range would be 25% higher than analysts predict in 2018.

Read more:

Thursday's small stockpile to watch

Economic news

Initial claims US state unemployment benefits fell by 27,000 seasonally adjusted 206,000 for the week ending December 8, stated in the US Department of Labor. Last week's demand dropped the most since April 2015. In mid-September, claims amounted to 202,000, the lowest since December 1969.

With Reuters and the Canadian press

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