The new trading week has kicked off with a major selloff in the price of oil. Over the weekend, Israel elected not to hit Iranian energy production or distribution facilities in its latest military response and as such some of the political risk premium that had been built in has quickly been removed. Precious metals are also coming down today, at a more moderate pace as political risk eases for now but support from easing monetary policy continues. Gold is down 0.3%, while Silver is down 0.6% and Platinum is down 0.8%. Copper is down 0.4% today.
US index futures are up this morning, posting gains of 0.25% to 0.50% with NASDAQ Futures leading the charge. European bourses are falling to start the week with the FTSE down 0.5% and the Dax down 0.2%.
It’s Big Week for earnings reports headlined by Big Tech, Big Oil, Big Pharma and other big cap names. Five of the “Magnificent Seven” stocks report results this week including Apple*, Amazon, Alphabet, Meta Platforms and Microsoft. Other headliners include Exxon Mobil, Chevron, Eli Lilly, Merck, Mastercard, McDonalds and Caterpillar. Canadian headliners this week include Fairfax Financial*, Agnico-Eagle Mines*, Imperial Oil, Enbridge, Canadian Natural Resources and Magna International.
The economic calendar starts off slow but really picks up as the week progresses and the calendar turns to November. Headliners include US ADP Payrolls and Q3 GDP on Wednesday, Canada GDP and US Core PCE inflation on Thursday, wrapping up with Manufacturing PMI reports and US Nonfarm Payrolls on Friday.
*Shares of Apple, Fairfax Financial, and Agnico-Eagle are held in portfolios managed by SIA Wealth Management