Over the weekend, hostilities in the Ukraine War ramped up and President Biden announced he has authorized the use of US long range missiles to strike targets inside Russia. On this news, precious metals and energy, which had previously retreated in part to the potential for peace following the US election earlier this month, have started to rally again. This morning, Gold is up 1.2%, Silver is up 1.7% and Platinum is up 1.9%. US Crude Oil is up 0.3% and with winter approaching, Natural Gas is up 2.7%. Copper is up 0.4%
The response from stock markets has been mixed. In the US, Dow Futures are down 0.2%, adding to Friday’s 0.7% loss. NASDAQ futures are up 0.2% a small bounce relative to Friday’s 2.2% drop. In Europe, the Dax is down 0.4%, while the FTSE is down slightly.
Earnings season moves into its later innings this week. There are still several notable companies reporting, headlined by Nvidia after the close on Wednesday. US retailers otherwise dominate the slate including Walmart and Lowes on Tuesday. Canadian headliners include George Weston on Tuesday and Metro on Wednesday. Tesla is up 6.8% in premarket action on reports that rules surrounding driverless cars may be eased by the incoming Trump administration.
This week’s economic calendar focus shifts to Canada and the UK who report inflation numbers Tuesday/Wednesday, and retail sales on Friday. US reports are dominated by housing numbers through the week Friday also brings Flash PMI numbers, the first peek at economic conditions into November.