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Before the Ring: What each Canadian investor needs to know today



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The future at Wall Street was slightly changed at the beginning of Thursday, while the world's stocks in January showed the best results after the Federal Reserve had suggested the patient's approach to future rate hikes. The overseas European markets were positive after a mixed start following reports showing that German retailers recorded the largest monthly decline in more than a decade. In Asia, the FED has helped to support stocks in China and Japan, although the poor rating of the Chinese factory's work has burdened itself. On Bay Street, the term contracts were tighter, and gold prices were more oil while the oil was stable.

The MSCI index of all countries, which tracks shares in 47 countries, grew by 0.5 percent. The index grew by more than 7 percent during the month, which is the largest January gain since the index was launched in 1988 and the best monthly indicator since December 2015, according to Reuters. The Fed maintained stable interest rates Wednesday, as expected, but also pointed to a pause in the current interest rate increase campaign by shrinking the promise of steadily increasing the future. The message helped push back over 25,000 and led to a 1.5 percent gain from S & P.

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"By the end of last year, the markets became increasingly nervous that the Fed was on the verge of a major political mistake by remaining on its mountain trail in spite of ever-increasing signs of weakness in the global economy," Jasper Lawler, head of research at London Capital Group, said . "As a result, stocks fell sharply because of the fear that higher borrowing costs would damage the economy at a time when global growth also slows down."

At the head of Thursday, earnings and economics will be at the forefront.

On Bay Street, investors read about the state of Canadian economy. According to Canada's statistics, GDP dropped by 0.1 percent in November, which partially neutralized the 0.3 percent increase in October. The fall in November was in line with market expectations. The report will then be followed by a statement by Canada's Deputy Governor Carolyn Wilkins, who will speak at the Toronto Board of Trade at 12:45 pm. (ET).

"The key constraint factor is expected to be a strike in the Canadian mail that will turn off various postal objects on a rotating basis during the month," said Paul Ferley, Assistant Chief Economist RBC, about expectations in November. – Considering the recent breaks of postal strikes, we assume a [about a] A drop in production of 1 percent in the production of transport warehouses, which in itself will represent about half of the overall GDP decline we expect. "

On earnings, the results from the online retail div Amazon.com Inc reports after the closing of the trading. In front of the open, earnings have come from companies, including Mastercard Inc. and General Electric Co. among others. GE's shares jumped 10 percent after the company announced quarterly $ 33.3 billion revenue, outperforming Wall Street forecasts. GE also announced that it had reached a $ 1.5 billion deal in principle with the US Ministry of Justice for investigating accounting practices.

In premarket action, Facebook shares rose by more than 11.35 percent after the social network had a record gain. After a year of controversy, Facebook said revenues rose 30 percent in the fourth quarter of 2018, compared to the last three months of 2017, to $ 16.91 billion. Profit rose 61 percent to $ 6.88 billion, while diluted earnings reached $ 2.38, which beat analyst expectations. Facebook also announced that it added millions of new daily active users to Canada and the US and four million in Europe.

Shares Tesla Inc. in the meantime, fell by almost 5 percent after the company missed earnings on Wall Street and announced the departure of its chief financial officer. Excluding items, Tesla earned $ 1.93 per share, which missed expectations of $ 2.20 per share, according to IBES Refinitiv's data. However, Tesla also promised profits every quarter of this year.

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Abroad, the Pan-European STOXX 600 rose by 0.06 percent. Unilever PLC shares fell about 3 percent in the morning trading after the Consumer Products Company reported lower sales than expected sales in the last quarter. British FTSE 100 rose 0.60 percent. German DAX added 0.06 percent. French CAC 40 grew by 0.24 percent.

In Asia, Japanese Nikkei added 1.06 percent. Spread Topix increased by 1.08 percent, while Softbank Group shares jumped by almost 5 percent. Hong Kong Hang Seng grew by 1.08 percent. Shanghai Composite Index recorded a growth of 0.35 percent.

goods

Oil prices were stable at an early stage, thanks to an increase in US raw materials that were less than predicted and the expected impact of American sanctions on Venezuelan production. West Texas Intermediate had a daily range of US $ 53.92 to US $ 54.69. The range of crude oil Brent is 61.57 to 62.28 USD.

"The oil market that has risen due to US sanctions imposed by Venezuela," said David Madden, market analyst CMC Markets U.K. "The South American country has seen that oil production has fallen considerably in the last 20 years, but the prospects for stronger supply have prompted traders to raise relatively inexpensive energy."

Also, he said, the report by the US Energy Information Board showed a weekly increase in oil stocks of 919,000 barrels, while gasoline stocks fell by more than 2.23 million barrels. Traders expected oil reserves to grow by 1.8 million barrels.

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In other commodities, gold prices were more and seemed to be the fourth monthly increase after Fed's release on Wednesday. Market gold rose 0.2 percent to $ 1,322.26 an ounce. Prices have risen to the highest level since May 11 at $ 1,323.34 on Wednesday. Gold futures in the US increased by almost 1 percent to $ 1,322. Gold spot grew by about 3.1 percent this month. The fall in the US dollar after Fed said it would halt the increase in interest rates also contributed to raising gold at a session on Thursday.

"The weaker dollar reasserts the bull's bikini case, which exerts $ 1,320," analyst Ola Craig Erlam said. "It only comes a few days after $ 1,300 has passed since many efforts have been made since the beginning of the year."

He said that if gold denies $ 1,320, then $ 1,340 will become the next significant level of resistance, "one that can be provisional and provisional if traders continue to guarantee the banknote."

Currencies and bonds

The Canadian dollar went up, but it was at its peak when the Statscan report showed that the Canadian economy fell by 0.1 percent in November. The loonie moved in the middle of the day ranging from 76.01 US cents to 76.21 US cents after the release of the report. The decline was in line with market expectations, followed by a growth of 0.3 percent in October. Oil prices and weaker banknotes have been playing in the recent Moons' strength, for which the Canadian dollar led the package in terms of winnings compared to money support this month, reports Reuters.

"October looks like an island in the storm for the Canadian economy, as November dropped," said CIBC chief economist Avery Shenfeld, pointing out that the Canadian Bank, like FED, is now pending for the next few quarters.

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"Real GDP dropped by 0.1 percent in line with our forecast, but now it is matched with a steady period from August to September to mark the last three months in which the effect was weak."

Overnight the US dollar index reached the lowest level of three weeks at 95.16.

For the cold, the key event for a fool will be the morning edition of the GDP report in November. Mr Cole says RBC expects a monthly drop of 0.1 percent after rising 0.3 percent in October. The impact of the strike in Canada in November should be cut off by about 0.1 percentage points. Growth in wholesale sales and production for a month will also likely strive, he said. Currently, the RBC requires the fourth quarter annual growth of about 1.1 percent "with some modest risk of falling".

In bonds, US Treasury yields have fallen to the FED's cautious rating. Yield on the 10-year US Note was lower and stood at 2.655 percent. The yield on the 30-year note was also down to 3.022 percent.

Shares are set to see the deal

Baker HughesGeneral Electric's petroleum services recorded a quarter-on-quarter growth of adjusted quarterly profits on Thursday, fueled by rising demand for oilfield services. The company reported a adjusted net profit of USD 120 million, or US $ 26 per share, in the fourth quarter ended December 31, at $ 65 million or USD 15 per share a year earlier.

Mastercard Inc recorded an increase of 33 percent of the adjusted quarterly earnings, as he traded multiple transactions during the holiday season. The adjusted net income rose to USD 1.6 billion, or USD 1.55 per share, in the fourth quarter ended 31 December at $ 1.2 billion or USD 1.14 per share a year earlier. Net income rose to $ 3.8 billion from $ 3.3 billion a year ago. Shares have risen by nearly 4 percent in pre-market trading.

Charter Communications Inc on Thursday exceeded quarterly revenue estimates, as cable operators attracted more customers for their online services, compensating for a drop in video subscribers. In the fourth quarter, which ended on 31 December, the company added 289,000 Internet service users.

Royal Dutch Shell said he would stick to spending discipline this year after gains in 2018 jumped by more than a third to $ 21.4 billion, which is the highest since 2014. The Anglo-Dutch oil company also reported a sharp increase in money production, which is Another sign that the cost savings of the oil crash in the market in 2014 will be filtered into his business. Shares have risen by more than 4 percent.

Unilever PLC on Thursday posted lower sales than expected in the fourth quarter, affected by inflation in Argentina and steadily rising growth in developed markets, in the first set of results since the new CEO, Alan Jope, assumed responsibility. The producer of Dove Soap and Ben & Jerry's Ice Creams said sales in the fourth quarter rose 2.9 percent. Analysts averaged 3.5 percent on average, according to a consensus forecast provided by the company.

Microsoft Corp.The Azure Platform for Computing in the Azure Cloud grew at a slower pace in December compared to the previous year. Azure, the leading Microsoft cloud product, had a 76 percent increase in revenue in the last quarter of 2018, compared to a 98-percent increase year-on-year. Microsoft's total revenue grew by 12.3 percent to $ 32.47 billion. Wall Street analysts expected an average of $ 32.51 billion in revenue, according to IBES's Refinitiv data. Microsoft reported on the latest results after closing on Wednesday. Shares have fallen by more than 2 percent in trading on the market.

More reading:

Waiting for Thursday for small steam

Economic news

Canadian GDP fell by 0.1 percent in November.

Canadian producers' prices declined by 0.7 percent in December, which is their second consecutive fall in the month, mainly due to cheaper energy and oil products, Canada's statistics reported on Thursday. Analysts in the Reuters poll predicted a 0.2 percent increase in December after falling 0.8 percent in November. The cumulative two-month drop was the highest since June and July 2017, when prices fell by 1.1% and 1.4% respectively.

The US Department of Commerce reported that weekly demand for unemployment claims increased by 53,000 last week to 253,000 compared to the 49-year-old lowest 200,000 weeks earlier. Fourth-week average, which is less volatile, has risen by 5,000 to 220,250, according to Associated Press.

With Reuters and Canadian Press

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