Global Markets Rise on Lower Oil Prices Ahead of Busy Week
Global stock markets have started the week on a positive note as a pause in fighting in the Gulf has led to a decline in oil prices, reducing inflation risks and boosting bonds. This comes ahead of a busy week of central bank meetings and earnings reports.
The TSX futures are in positive territory after Canada's main stock index notched a small gain on Friday, while Wall Street futures also pointed higher after the tech-heavy Nasdaq finished lower on Friday due to concerns about massive AI spending. Celestica Inc., First Capital Realty Inc., Gibson Energy Inc., and Topaz Energy Corp. will report their earnings in Canada today.
On Wall Street, investors are waiting for earnings reports from AstraZeneca PLC, Nucor Corp., TFI International Inc., and Welltower Inc.
The decline in oil prices was led by Brent crude futures falling 5.9% to $91.08 a barrel and U.S. West Texas Intermediate crude down 5.4% at $84.51 a barrel. PVM analyst John Evans said that the market is 'forever seeking good news' from an arena that is not providing any guarantees for oil flow, and prices will continue lower if high prices dent demand.
Spot gold climbed 1.3% to $4,103.59 an ounce and U.S. gold futures gained 0.9% to $4,106.00. The Canadian dollar weakened against its U.S. counterpart, with the loonie trading between 70.89 US cents and 71.07 US cents in early trading.