Before the Bell: What Every Canadian Investor Should Know Today
Equities
Global markets saw a mixed performance ahead of a crucial week filled with corporate earnings reports, central bank meetings, and significant economic data releases. Wall Street futures took a hit after major U.S. markets closed lower on Friday, indicating a potential downturn.
TSX futures remained relatively stable as commodity prices experienced a slight recovery from earlier losses. Investors are closely monitoring earnings reports from prominent companies like Walt Disney Co., Palantir Technologies Inc., and Teradyne, Inc. on Wall Street.
According to Ipek Ozkardeskaya, a senior analyst at Swissquote, this week is packed with earnings releases: Palantir and Disney today, AMD tomorrow, Google and Qualcomm on Wednesday, and Amazon on Thursday. Despite strong results from Meta, Microsoft, and Apple, investor sentiment remains cautious. The focus is on whether cloud growth is genuinely AI-driven and if AI investments are yielding tangible returns.
Overseas, the STOXX 600 index in Europe saw a 0.3% increase, with Britain's FTSE 100 rising 0.41%, Germany's DAX advancing 0.56%, and France's CAC 40 up 0.39%. However, Asian markets were less favorable, with Japan's Nikkei closing 1.25% lower and Hong Kong's Hang Seng dropping 2.23%.
Commodities
Oil prices took a hit after U.S. President Donald Trump's comments suggested a potential de-escalation in tensions with Iran, an OPEC member. This led to a 4.8% decline in Brent crude futures to US$65.98 per barrel, and a 5.2% drop in West Texas Intermediate (WTI) crude to US$61.84 per barrel.
Trump's threats of intervention against Iran if it didn't agree to a nuclear deal or continued to suppress protesters have been a significant factor in maintaining elevated oil prices throughout January, according to Priyanka Sachdeva, an analyst at Phillip Nova.
In other commodity news, spot gold prices slipped 1.8% to US$4,775.96 per ounce, recovering from an earlier 10% decline. U.S. gold futures for April delivery increased by 1.2% to US$4,800.50 per ounce. Silver spot prices dropped 1.1% to US$83.73, recovering from a 15% fall earlier in the session, and have shed approximately 33% since reaching their all-time peak of US$121.64 last week.
Currencies and Bonds
The Canadian dollar weakened against the U.S. dollar, with the loonie trading between 73.11 US cents and 73.51 US cents early in the day. Over the past month, the Canadian dollar has appreciated by about 1.03% against the greenback.
The U.S. Dollar Index, which measures the greenback against a basket of currencies, rose by 0.11% to 97.10. The euro strengthened by 0.14% to US$1.1867, while the British pound gained 0.14% to US$1.3705.
In the bond market, the yield on the U.S. 10-year note was last recorded at 4.229%.
Economic News
Economic indicators from China, Japan, and the Eurozone showed positive signs. Britain's PMI rose to its highest level since August 2024 in January, indicating increased inflows of new work and a potential recovery after a sluggish end to 2025. Global manufacturing PMI surveys suggest that factory activity has improved, with Asian exporters and the Eurozone returning to manufacturing expansion, possibly indicating an end to the impact of higher U.S. tariffs.
North American Auto Sales
(With Reuters and The Canadian Press)
