Choppy Markets Await Earnings and Economic News

Global markets opened the week on a muted note, with most major indexes trading flat to slightly lower. Overseas equities softened overnight, with the Hang Seng down 0.7 percent, the Nikkei off 0.1 percent, the DAX lower by 0.6 percent, and the FTSE down 0.2 percent. U.S. index futures are hovering flat to marginally negative.

Metals are also flat to lower, with Gold down 0.3% and Copper down 0.8%. Energy trading finds Crude Oil up 0.3% but Natural Gas down 2.5%. Bitcoin is up 0.6% but still stuck below $95,000. Currency trading finds the Loonie flat while the Euro and Yen are both down 0.2%.

As U.S. government operations resume, previously delayed data releases may begin to surface this week. For today, Canada consumer prices (2.2% vs Street 2.1% and previous 2.4%) indicate inflation remains benign. The US Empire State Manufacturing Index (18.7 vs Street 6.0 and previous 10.7) came in well above expectations. 

The second wave of earnings season starts this week with a focus on US retailers and Nvidia, who reports Wednesday evening. Other headliners include Home Depot on Tuesday and Walmart on Thursday.

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