What every Canadian investor needs to know today

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Equities

Global shares edged higher as markets shrugged off U.S. President Donald Trump’s threats that more tariffs were imminent including on steel and aluminum, an inflationary move that could limit the scope for rate cuts.

Wall Street’s main indexes opened higher, recovering from last week’s declines, as steelmakers surged. The Dow Jones Industrial Average rose 0.21 per cent to 44,396.92, the S&P 500 gained 0.34 per cent to 6,046.4, and the Nasdaq Composite advanced 0.74 per cent to 19,668.178 at the bell.

The Toronto Stock Exchange’s S&P/TSX composite index opened 0.98 per cent higher at 25,691.57, lifted by metal mining shares.

In Canada, investors are getting results from PrairieSky Royalty Ltd.

On Wall Street, markets are watching earnings from McDonald’s Corp. and Loews Corp.

“These could be a strategic negotiating tool for President Trump or the beginning of a prolonged trade war,” said Stephen Dover, head of the Franklin Templeton Institute.

“Nearly half of U.S. imports serve as inputs for domestic companies, meaning businesses will either have to pass higher costs to consumers, absorb lower margins or adjust supply chains entirely.”

Overseas, the pan-European STOXX 600 was up 0.57 per cent in morning trading. Britain’s FTSE 100 rose 0.79 per cent, Germany’s DAX gained 0.57 per cent and France’s CAC 40 advanced 0.29 per cent.

In Asia, Japan’s Nikkei closed 0.03 per cent higher, while Hong Kong’s Hang Seng rose 1.84 per cent.

Commodities

Oil prices rebounded despite lingering fears over a potential global trade war after U.S. President Donald Trump’s latest tariff plans.

Brent crude futures climbed 1.4 per cent to US$75.71 a barrel, while West Texas Intermediate (WTI) crude traded at US$72.05 a barrel, up 1.5 per cent.

In light of Trump’s temporary backdown last week, investors appeared to be shrugging off the steel and aluminum tariff threat for now, Tony Sycamore, a Sydney-based analyst at IG said.

“The market has realized tariff headlines are likely to continue in the weeks and months ahead,” he said, adding that there was an equal chance they could be walked back or even increased at some point in the near future.

In other commodities, spot gold was up 1.5 per cent at US$2,903.19 an ounce, after hitting a record high of US$2,905.98 earlier in the session. U.S. gold futures also climbed 1.5 per cent to US$2,929.70.

Currencies and bonds

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

The day range on the loonie was 69.54 US cents to 69.98 US cents in early trading. The Canadian dollar was up about 0.27 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, gained 0.16 per cent to 108.22.

The euro was down 0.06 per cent to US$1.0324. The British pound slid 0.11 per cent to US$1.2389.

In bonds, the yield on the U.S. 10-year note was last down at 4.492 per centl.

Corporate news

Toronto-Dominion Bank intends to exit its full equity investment in U.S. financial services firm Charles Schwab, the companies said on Monday.

McDonald’s has posted a steeper-than-expected drop in quarterly U.S. comparable sales, as demand took a hit from a brief E.coli outbreak while diners remained watchful of their spending.