Wednesday , April 21 2021

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


World stock prices for Wall Street futures were lower on early Friday, as new figures from China and Europe began to question the strength of the global economy. Dow's futures were reduced by triple digits before North America, while Nasdaq and S & P's futures were down by about 1 percent. World stocks were generally lower when the MSCI index of all countries fell by half a percentage point. In Canada, futures on Bay Street were also weaker with economic data weighing.

Global stocks came after China announced that retail sales in November were less than expected and the slowest since 2003. At the same time, data on Europe showed a decline in France's business break in December and a slowdown in the German economy by the expansion of the private sector to a four-year low.

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"The sentiment of a small global growth continues to pull into the stock market after the failure to use the double big economic data has sent investors who are surfing the cover," said OANDA analyst Stephen Innes. "The poor Chinese retail data gained the ball to the south, but Europe's risk assets are brutally blowing when French PMI falls into the area of ​​smuggling."

He said that while the yellow waist protest could be the basis for this problem in France, it does not explain Germay's "false" PMI figures, which suggests that "the euro area economy is still mildly based on providing the basic principles behind the lack of weight (the euro) . "

On-street streets are likely to focus on Ontario to cut their plans for selling marijuana in the province, pointing out the lack of concern. Instead of opening an uncovered store on April 1, a gradual approach will be introduced in the province, limiting the initial number of available retail licenses to 25.

DavidsTea Inc. shares could be paid attention as soon as the sale began. After Thursday's closing, the company reported net losses of 35 cents a share compared to 25 cents a year. Sales increased by 1.5 percent to $ 43.7 million from $ 43 million in the same quarter of 2017. Herschel Segal, the company's founder and Chief Executive Officer, said in an interview with analysts that DavidsTea sees "favorable trends in a number of business areas." The Canadian press reports suggest that analysts were not allowed to ask questions during the talks because Segal became a temporary CEO after the company's investors voted 54 percent in favor of the seven director's shale management as management candidates. Former Chief Executive Joel Silver left the post after the vote.

Wall Street Costco Wholesale Corp's shares fell by about 3% on the primary market after a decline in gross margins, which was a shadow that was more than expected in the last quarter. Higher gas prices in the first quarter led to a drop of 50 basis points to 10.75 percent. With the exception of gas, reserves fell by 26 basis points. However, total revenues increased by 10.2 percent to $ 35.07 billion, predicting a $ 34.80 billion larger analysts. Sales of one and the same store, excluding fuel and currency fluctuations, rose by 7.5 percent, and analysts' forecasts of an increase of 5.8 percent.

US markets also bought November retail sales, which almost coincided with headline forecasts, but the information was much better than expected. The US Department of Commerce said sales rose 0.2 percent in a month. Economists forecast an increase of 0.1 percent. However, retail sales, excluding cars, gasoline, building materials and food services, rose 0.9% last month, after a 0.9% increase in October.

"It provides a three-month average annual retail retail sales peak of 4.2 percent, which is higher than the pace observed in the third quarter," said Catherine Judge, economist at CIBC. "A surprising increase of 2.3 percent in retail sales on the Internet led to high sales. This is in line with the Fed's rising interest rates at the next week's meeting, and we have revised our fourth-quarter consumer outlook for recent strong spending growth."

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Overseas, the European-wide STOXX 600 dropped by about 1 percent, to most of the major red sectors. Sales-sensitive car stocks were among the top decliners. British FTSE 100 fell by 0.75 percent. The German DAX lost 0.98 percent. French CAC 40 dropped 0.87 percent.

Asia was surprised by unsatisfactory Chinese economic data. The Shanghai Composite Index completed its weekly closing session by 1.53 percent. Hong Kong Hang Seng lost 1.62 percent. Japanese Nikkei fell 2.02 percent.

Raw materials

China's weak economic data hit crude oil prices on Monday, although continued optimism about further OPEC cuts in production helped reduce losses. Brent and West Texas Intermediate were weaker before North America opened. The Brent day range ranges from $ 60.77 to $ 61.53. The WTI range ranged from $ 52.11 to $ 52.95.

At this point, Brent seems to decrease by about 1 percent every week. Less than forecasted retail sales, together with unsatisfactory industrial output, weigh energy prices alongside stock markets. OPEC's step to cut production by 1.2 million barrels per day in the new year has helped limit some losses.

In the morning, OANDA Craig Erlam asks if oil prices are now lower after the OPEC transition, or if current markets only see a breakthrough.

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"After reducing the impact of oil production on oil prices, it has been modest, at least, to say, but at the very least at the very least, the fact that the failure to reduce new falls will make it easier," said Erlam. "Now we are facing a tight price close to the minimum level, between USD 50 and USD 54 for WTI and USD 58 USD for Brent. This may in itself be an installation of a self-aim, but it does not seem too much to rush into these levels, that the mood can be directed to the negatives, which are still a bit long. "

In other commodities, a stronger US dollar is still weighing gold, while second-line session prices fall to one week early on Friday. Spot gold in Europe fell by 0.3 pct by midday, reaching $ 1,238.86 per ounce. Earlier on Friday, prices reached $ 1,236.80, their weakest since December 6th. Gold prices fell by 0.7 percent this year.

"[The U.S. dollar] is still a key driver for golden prices, "said OANDA Stephen Innes, pointing out that after a respectable ECB statement, gold prices fell again from recent US dollar versus euro values.

Next week the US Federal Reserve will receive the next political decision. Mr Inne spoke about gold: "forward-looking tactical games", as the Fed is expected to remain a lucky one by sending the green part back down.

Currency and bonds

Canada was slightly weaker because its US dollar was targeting the best weekly rates against the currency basket since August. The current longevity range is 74.62 US Cents to 74.92 US Cents. The loonie's daily key is even third quarter national balance sheet, which RBC's main currency strategist Adam Kole says will see household debt trends and related service costs. BMO Senior Economist Sal Gutieri said in an early note that Moody's downgrade to Ontario's credit rating was weighing loonie early on Friday.

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In the global currency markets, the US dollar index has been around 1 percent since the beginning of the week.

Mr Kohl said that China's weak November figures are mostly over-the-counter prices for Australian and New Zealand dollar weaknesses. He also said that the latest news from Brussels on Britain's withdrawal from the EU "is not very encouraging".

"While PM [Theresa] May was never able to get a warm welcome, and this is just the beginning of a new conversation, the Mayan initial proposals seemed to be rejected by the hands and her conversation style was strongly criticized, "he said." The summit will be held today, but it is unlikely that such will soon appear the same as a concrete proposal for an amendment to the Supplement / Brexit Agreement. "

US Treasury bonds fell on bonds from weak economic news from China. The 10-year bond yield was less than 2.88 percent.

Stocks for action

Suncor Energy Inc. said that the forecast is that average production capacity will increase by 10 percent in 2019, even after the introduction of Albert's mandated releases. Suncor expects an average production capacity of 780,000 to 820,000 barrels of oil equivalent per day, which will increase from about 730,000 boe / d in 2018. The company also expects capital expenditures to range from $ 4.9 billion to $ 5.6 billion. "The mid-range of these ranges is the balance of capital compared to 2018," Suncor said.

Apple Inc. , faced with China's ban on some of its iPhone models for allegedly infringing patents for Qualcomm Inc., said on Friday that users will be offered software updates to resolve potential issues. Apple comes up with "software updates early next week" to address potential concerns about our compliance with the order, "the company said in a statement to Reuters. Earlier this week, Qualcomm said that the Chinese court had banned the sale of some older iPhone models for two of its patent infringement, although intellectual property lawyers have claimed that the ban could take time to implement it. "Based on the iPhone models that we are offering today in China, we believe we have been respected," Apple said. Apple's shares were down by about 1 percent premarket trading.

Luxury goods maker LVMH has agreed to buy Belmond, a hotel owner, including the Venetian landmark Cipriani, for $ 3.2 billion, including a debt to increase his presence in the hospitality of the meal. SIA "LVMH", which is behind the fashion label "Louis Vuitton" and "Christian Dior", has already purchased hotels including Cheval Blanc, the prestigious French Alpine ski resort in Courchevel and Bvgalri hotels.

Adobe Systems Inc announced quarterly earnings growth of 22.8 percent, driven by higher subscription fees for its leading Creative Cloud Creative Suite, featuring Photoshop. The company's net income in the fourth quarter ended November 30 increased to $ 678.2 million, or $ 1.37 per share from $ 501.5 million, or $ 1 per share last year. Total revenue rose to $ 2.46 billion from $ 2.01 billion.

Read more:

Friday's small cap stocks to watch

Friday's analysts innovations and downsizing

Economic news

The Canadian Statistics Office announced that Canada's household loan market debt, as part of households' disposable income, rose to 173.8 percent from the previous three months to 173.2 percent in the third quarter.

US retail trade turnover in November rose by 0.2 percent. Analysts were looking for an increase of 0.1 percent.

The Federal Reserve said US industrial production rose 0.6% last month. However, October's reading was revised to show output dropped by 0.2 percent instead of rising by 0.1 percent.

(9:45 am ET) US Markit PMI for December.

With Reuters and the Canadian press

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