Global stock markets are off to a mixed start as the new trading week begins. US index futures are up 0.2%-0.3% and the Hang Seng gained 0.7% overnight. Conversely, the DAX and FTSE are down 0.1%-0.2%, Sydney lost 1.0%, and Tokyo lost 0.2%.
In commodity action, Copper is up 0.5%, Crude Oil is flat, and Natural Gas is down 5.2%. Precious metals are climbing with Gold up 0.6%, Silver up 1.1%, and Platinum up 1.3%. The Pound is up 0.5%, the Euro is up 0.3% and the Loonie is up 0.1% as the US Dollar broadly declines again.
Fed Chair Powell speaks tomorrow, and investors will be watching for hints on a possible rate cut at next week’s meeting and whether the August 1st tariff deadline could sway the Fed’s stance. Canada releases producer prices, new house prices, and retail sales data this week, while Thursday brings flash PMI reports in what is otherwise a quiet stretch for economic data.
The US moves into the heart of earnings season this week with results from technology, railroads, hotels, mines, manufacturers and other sectors. Headliners include Coca-Cola on Tuesday, followed by IBM*, Alphabet, and Tesla on Wednesday, and Union Pacific and Intel on Thursday. Canada earnings begin this week, headlined by Canadian National Railway on Tuesday, Suncor Energy and Rogers Communications on Wednesday, and Loblaws* on Thursday.
*Shares of IBM and Loblaws are held in portfolios managed by SIA Wealth Management.