Amid reports of new COVID cases in China starting to drop off, commodities have been on the rebound this morning with WTI Crude Oil gaining 1.7%, and Copper climbing 1.0%. The Hang Seng popped 5.2% overnight as well.
Stock markets have stabilized overnight. US index futures are trading flat to up 0.2%, with NASDAQ futures leading the bounce, as investors digest Monday’s major US index losses of 1.4%-1.6%. In Europe today, the Dax is up 0.2% and the FTSE is up 0.6%.
Canadian banks have stormed into the spotlight today with two big developments. First Royal Bank announced that it has agreed to purchase HSBC’s Canadian operation for $13.5%, increasing its presence on the West Coast. Second, Bank of Nova Scotia kicked off bank earnings week on the soft side, beating the street but down from last year ($2.06 vs street $2.00 and year ago $2.10), but announced a significant jump in loan loss provisions from last year ($529M vs year ago $168M).
In economic news today, Canadian Q3 GDP was worse than expected (2.9% vs street 3.5% and Q2 3.3%). The main event in the US today is the S&P Case-Schiller House Price Index (street 10.8% vs previous 13.1%) which is due at 9:00 am EDT. Investors may also look ahead to a flurry of US economic announcements tomorrow including ADP payrolls, and Fed Chair Powell speaking.
