Canadian Inflation Surges and Bank Earnings Resume

Canadian industrial prices (1.5% vs street 0.6%) and raw material prices (5.5% vs street 3.2%) indicate inflation pressures on businesses are increasing once again.

With the US long weekend over, its fully back to business across North America this morning. Canadian bank earnings season has resumed on a positive note with the Bank of Nova Scotia beating expectations ($1.58 vs street $1.56). Loan loss provisions were in line with expectations and management attributed the positive results to growth in Capital Markets, Wealth Management and Canadian Banking. Tomorrow, results are due from Bank of Montreal and National Bank.

US index futures are trading flat to down 0.2% this morning. Overseas indices like the Hang Seng, Nikkei and Dax were all down marginally, while the FTSE is down 0.3%. Yesterday’s commodity and currency rallies have cooled. Bitcoin is down 2.0%, while Gold is down 0.1%. US Crude Oil is up another 0.5%, but while Copper is steady, consolidating yesterday’s gains.

The US 10-year treasury note yield is holding steady just below 4.50% ahead of three Fed speakers today and the Beige Book regional report tomorrow. US house price readings and consumer confidence are on the way later this morning.

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