Equities

Global markets drifted lower ahead of what is likely to be an eventful week for U.S. interest rate policy. Federal Reserve chair Jerome Powell is set to speak later this week at the Jackson Hole symposium on the economic outlook and the central bank’s policy framework.

Investors are bracing for U.S. President Donald Trump’s meeting with Ukrainian President Volodymyr Zelensky and European leaders later today, after Trump’s summit with Russian President Vladimir Putin in Alaska on Friday.

Wall Street futures were in negative territory, while TSX futures followed sentiment lower ahead of inflation data tomorrow.

“We see three rate cuts in the U.S. this year, and slower GDP growth but no recession,” said Mark Matthews, head of research for Asia at Bank Julius Baer in Singapore. “The combination of those two should allow the rally to continue.”

Overseas, the pan-European STOXX 600 was down 0.2 per cent in morning trading. Britain’s FTSE 100 slid 0.06 per cent, Germany’s DAX fell 0.32 per cent and France’s CAC 40 dropped 0.74 per cent.

In Asia, Japan’s Nikkei closed 0.77 per cent higher, while Hong Kong’s Hang Seng gave back 0.37 per cent.

Commodities

Oil prices rose after White House trade adviser Peter Navarro said India’s purchases of Russian crude were funding Moscow’s war in Ukraine and had to stop, while traders looked to the outcome from the Trump-Zelensky meeting.

Brent crude futures were up 0.46 per cent to US$66.15 a barrel. West Texas Intermediate (WTI) crude gained 0.61 per cent to US$63.18 a barrel.

“Market focus now shifts to today’s Washington meeting for signs of a deal that could eventually boost crude and gas supply,” said Saxo Bank’s head of commodity strategy, Ole Hansen.

“I don’t believe the oil market has priced in a full peace dividend that potentially could see prices of crude and EU gas suffer further setbacks,” Hansen added.

In other commodities, spot gold gained 0.4 per cent to US$3,349.47 an ounce after hitting its lowest level since Aug. 1. U.S. gold futures for December delivery rose 0.4 per cent to US$3,395.10.

Currencies and bonds

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

The day range on the loonie was 72.35 US cents to 72.51 US cents in early trading. The Canadian dollar was down about 0.83 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.17 per cent to 98.02.

The euro slid 0.2 per cent to US$1.1682. The British pound declined 0.11 per cent to US$1.3540.

In bonds, the yield on the U.S. 10-year note was last down at 4.297 per cent.

Economic news

Euro zone trade surplus

(8:15 a.m. ET) Canadian housing starts for July. The Street is projecting an annualized rate decline of 4 per cent.

(8:30 a.m. ET) Canada’s household and mortgage credit for June.

(8:30 a.m. ET) Canada’s international securities transactions for June.

(10 a.m. ET) U.S. NAHB Housing Market Index for August.

With Reuters and The Canadian Press