Equities

Global stocks recovered some of their recent losses after comments by U.S. Federal Reserve chairman Jerome Powell bolstered rate-cut hopes and a slate of positive bank earnings on Wall Street.

U.S. futures were in positive territory. Dow futures were up 0.43 per cent, S&P 500 futures rose 0.65 per cent and Nasdaq futures were 0.86 per cent higher as of 7:20 a.m. ET.

TSX futures followed sentiment higher after Canada’s main stock marked ended sharply up yesterday.

On Wall Street, markets are watching earnings from Bank of America Corp., Morgan Stanley, Abbott Laboratories, Progressive Corp., Kinder Morgan Inc., United Airlines Holdings Inc., PNC Financial Services Group Inc. and Prologis Inc.

Powell yesterday left the door open to further rate cuts and said the end of the central bank’s long-running effort to shrink the size of its holdings may be coming into view.

Powell “struck a more dovish tone than expected,” Deutsche Bank analysts wrote. His comments on ending the shrinking of the Fed balance sheet in the coming months “puts December on the map in terms of a halt,” they added.

Overseas, the pan-European STOXX 600 was up 0.71 per cent in morning trading. Britain’s FTSE 100 declined 0.46 per cent, Germany’s DAX climbed 0.23 per cent and France’s CAC 40 advanced 2.6 per cent.

In Asia, Japan’s Nikkei closed 1.76 per cent higher, while Hong Kong’s Hang Seng rose 1.84 per cent.

Commodities

Oil prices drifted lower, extending losses from the previous session, as investors weighed the International Energy Agency’s warning of a supply surplus in 2026 and U.S.-China trade tensions that could curtail demand.

Brent crude futures fell 0.2 per cent to US$62.24 a barrel. West Texas Intermediate (WTI) futures eased 0.1 per cent to US$58.64 a barrel.

“The market is focusing on excess supply amid mixed demand signals. Ebbing geopolitical risks and escalating trade tensions are also adding further pressure on prices,” said Emril Jamil, a senior oil analyst at LSEG.

In other commodities, gold extended its rally to breach US$4,200-an-ounce for the first time. Spot gold was up 1.5 per cent at US$4,203.79 an ounce. U.S. gold futures for December delivery gained 1.4 per cent to US$4,220.20.

Currencies and bonds

The Canadian dollar strengthened against its U.S. counterpart.

The day range on the loonie was 71.17 US cents to 71.29 US cents in early trading. The Canadian dollar was down about 1.91 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.22 per cent to 98.83.

The euro rose 0.18 per cent to US$1.1631. The British pound gained 0.24 per cent to US$1.3352.

In bonds, the yield on the U.S. 10-year note was last down at 4.017 per cent.

Other corporate news

Stellantis NV says it is moving production of the Jeep Compass to Illinois from Brampton, Ont., as part of a US$13-billion plan to boost production in the United States.

Economic news

China inflation data for September. Japan industrial production data for August.

Euro area industrial production data; France inflation data

8:30 am ET: Canadian manufacturing sales for August and new orders. They are expected to be down 1.5 per cent and 2 per cent, respectively.

8:30 am ET: Canada wholesale trade for August

83:0 am ET: Canada new motor vehicle sales for August. A decline of 2.5 per cent from a year earlier is expected by BMO

8:30 am ET: U.S. Empire State Manufacturing Survey

G20 finance ministers and central bank governors meet in Washington, D.C.

With Reuters and The Canadian Press