Global Markets:
● Asian Stock Markets : Nikkei up 0.58%, Shanghai Composite down 0.10% Hang Seng down 0.40% ASX down 0.75%
● Commodities : Gold at $4,345.07 (-0.16%) Silver at $63.868 (-0.41%), Brent Oil at 106.97 (1.22%), WTI Oil at 102.86 (1.45%)
● Rates : US 10-year yield at 5.011, UK 10-year yield at 5.3739, Germany 10-year yield at 3.5306
News & Data:
● (CAD) Median CPI yy 2.0% to 2.0% expected
Markets Update:
Stock futures were little changed Monday evening as investors looked ahead to the Federal Reserve’s policy decision later this week while monitoring rising oil prices and Treasury yields.
S&P 500 futures gained 0.05%, Dow Jones Industrial Average futures rose 21 points, or 0.04%, and Nasdaq 100 futures added 0.03%.
During regular trading, the Dow fell 152 points, or 0.3%, while the S&P 500 declined 0.5% and the Nasdaq Composite dropped about 0.6%.
Asian markets were mixed. Japan’s Nikkei 225 rose 0.6%, while South Korea’s Kospi fell 0.25%. Hong Kong’s Hang Seng Index slipped 0.3%, and Australia’s S&P/ASX 200 dropped 0.7%.
Pressure on technology stocks continued as concerns about the pace and safety of artificial intelligence development weighed on investor sentiment. Nvidia fell 3%, while Corning plunged 13%. The iShares AI Innovation and Tech Active ETF dropped nearly 4%.
Higher bond yields also unsettled markets. The 10-year Treasury yield briefly surpassed 5%, reaching its highest level since October 2023. Oil prices climbed after Saudi Arabia shut a key pipeline bypassing the Strait of Hormuz, pushing Brent crude above $105 a barrel and West Texas Intermediate above $101.
Markets are also focused on Wednesday’s Fed decision. Fed funds futures indicate about a 92% probability of a quarter-point rate increase, lifting the upper target range to 4%.
Upcoming Events:
● 12:30 PM GMT – CAD Wholesale Sales m/m
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