US traders have returned from the long weekend in a good mood. US index futures are up 0.2%-0.5%. Europe is now in the green with the Dax and FTSE both up about 0.2%. Asia Pacific trading saw the Hang Seng rally 1.6%.
The US Dollar is dropping back a bit today. Gold is up 1.0%, while the Loonie, Euro, Yen, and Pound, are up 0.1%-0.3%. Commodities are mixed. Crude Oil is up 0.5%, but Natural Gas is down 1.3% and copper is down 2.1%.
In economic news, Canada consumer prices were in line at 1.9%, but Core CPI increased (2.1% vs previous 1.8%), suggesting inflation pressures may be reemerging. Canada housing starts disappointed (239K vs street 250K). The US Empire State Manufacturing Index (+5.7 vs street -1.0 and previous -12.6) improved significantly and beat expectations. The US NAHB Housing Market Index is due at 10:00 am EST (street 47.0). The next two days are dominated by housing and inflation numbers. Friday is a bigger day for data, featuring Flash PMI reports plus Canada and UK retail sales.
This is a quieter, in-between week for earnings. Notable companies in Canada reporting this week include Cenovus Energy, Manulife Financial*, Loblaws* and Nutrien. Stateside is pretty quiet with the main events being Walmart and Booking Holdings on Thursday. Earnings pick up again next week with Canadian banks and US retailers reporting.
*Shares of Walmart, Manulife Financial, and Loblaws, are held in portfolios managed by SIA Wealth Management