Before the ring: What all Canadian investors need to know today

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Bank profits rank first in Canada on Tuesday as the Bank of Nova Scotia opens the earnings season for Canada's leading lenders. Before the opening bell, the Bay Street futures were slightly lower, reflecting the weakness observed in world markets overnight. On Wall Street, the futures were also in the red with trade tensions weighing after US President Donald Trump said he expected to go ahead by increasing tariffs on Chinese imports for a amount of 200 billion US dollars, from 10% currently to 25%.

Comments also dampened global market optimism at the start of the week with the MSCI all-country index tracking shares in 47 countries, rising 0.1% overnight.

"Asian equity markets have generally increased slightly overnight despite President Trump's warnings that customers could be subject to a 10% tariff on iPhones and laptops imported from China," said David Madden. , badyst at CMC Markets. Mr. Trump also threatened to raise the tariff rate on Chinese imports to US $ 200 billion, from 10% to 25%, and warned against imposing tax on Chinese imports. Additional tariffs may be a big breeze before the G20 summit, but we know that Trump is unpredictable. "

Trump's latest comments came in an interview with the Wall Street Journal and preceded a meeting between US President and Chinese President Xi Jinping at the G20 summit to be held later this week in Argentina. Apple's shares fell by nearly 2% in pre-market trading suggestions that iPhones could face.

On Bay Street, Scotiabank was the first of Canada's largest banks to release its latest results, reporting higher earnings in the fourth quarter. The bank posted a profit of $ 2.27 billion, or $ 1.71 a share, against $ 2.07 billion or $ 1.64 a year earlier. On an adjusted basis, the Bank of Nova Scotia reported earnings per share of $ 1.77, up from $ 1.65 a year earlier. Analysts were looking for adjusted earnings per share of $ 1.79, according to Refinitiv's IBES data. The bank also announced plans to leave nine Caribbean countries as its activities refocus in the region.

Quebec retailer Alimentation Couche-Tard Inc. is also expected to post its results after the close.

On Wall Street, a number of Federal Reserve officials are scheduled to speak. Fed Vice President Richard Clarida delivers the keynote address at a conference in New York. Three Fed presidents are also scheduled to participate in a roundtable later in the day. Later in the week, Fed Chairman Jerome Powell is expected to deliver remarks at an event at the New York Economic Club.

Abroad, commercial concerns quickly hit Europe, with the pan-European STOXX 600 dropping 0.38%. The London FTSE 100 lost 0.27%. Thomas Cook's travel agency shares fell 33% in open markets after cutting their earnings forecasts and suspended their dividend. In Germany, the DAX was down 0.36%. The French CAC 40 fell by 0.27%.

Asian markets ended the session in a rather positive manner, with Japan's Nikkei adding 0.64%. The broader Topix rose 0.14 percent. Hong Kong's Hang Seng fell 0.17%, while the Shanghai Composite Index edged down 0.04%.

Basic products

Crude oil prices remained stable or even slightly higher, but remained close to year-lows, as output growth was somewhat offset by forecasts that OPEC and its allies would reduce oil prices. their production at a meeting next month. At the last check, Brent crude stood above $ 60 and ranged from $ 59.50 to $ 61.15 for the day. West Texas Intermediate was also positive and posted a spread of 50.70 USD to 51.93 USD.

On Monday, prices rebounded about 3% after falling more than 6% on Friday. The gains this week, however, were tempered by reports that Saudi Arabia increased production in November, reaching record levels, reaching 11.1 million barrels a day to reach 11.3 million barrels a day.

"Record production in Saudi Arabia is the last thing this market needs at the moment," said Jasper Lawler, head of research at the London Capital Group, in a note. "Concerns about excess supply, coupled with slowing demand fears, have resulted in a correction in the price of oil that has turned into an oil spree with epic proportions. We are returning to the past, where the next OPEC meeting is being monitored with unprecedented intensity since 2016. "

The next OPEC meeting is scheduled for December 6th. Saudi Arabia is one of the producers who advocate for a reduction in production.

The new US inventory numbers are also expected later on Tuesday and could affect prices.

"The API inventory number (American Petroleum Institute) could later aggravate the misery on Brent and WTI if another major construction was reported, although I find myself again wondering if the sale is a little exaggerated in the circumstances, "OANDA said. The badyst Craig Erlam said. "The market seems to take into account either a reduction in production or a small reduction, which could leave oil prices subject to brief pressure."

Gold prices hit their all-time low in a week, as Trump's comments on US tariffs pushed the US dollar higher. Spot gold prices edged up 0.1% to $ 1,223.75 an ounce in early morning trading in Europe, after reaching its lowest level since Nov. 19 at $ 1,219.04. Gold futures in the US increased 0.1% to $ 1,223.70 per ounce.

Currencies and obligations

The Canadian dollar changed little before the opening in North America, the price of crude stabilized and the US dollar reached its best level in two weeks compared to a group of world currencies. Until now, the range of days on the loonie ranges from 75.33 cents to 75.54 cents US.

Elsa Lignos, RBC's global head of currency strategy, said "no major data releases are expected before Friday's GDP for the third quarter, which would leave [the Canadian dollar] to follow the context of risk and wider movements in the [U.S. dollar] RBC expects annual growth of about 2% of GDP in the third quarter.

Meanwhile, the US dollar has benefited from Trump's comments that it is "very unlikely" that the US is delaying an increase in tariffs on Chinese products. The US dollar index, which measures the dollar against six other major currencies, rose 0.2% to 97.28, its best level in nearly two weeks. Reuters notes that the greenback has risen over the previous two sessions, as investors seek refuge on concerns about the strength of the global economy.

As for bonds, US yields fell as traders wait for comments from Fed officials later in the session. The 10-year note yield was less than 3.059%. The 30-year note yield was also below 3.311%.

Stocks set to see the action

Thomas cook lost a third of its value on Tuesday after the holiday operator cut its profit target for the second time in two months and suspended its dividend, burned by the effects of a hot summer and exceptional charges in Great Britain. The world's oldest travel agency, Thomas Cook, has been affected by the heat wave that hit Northern Europe this year, dissuading holidaymakers from booking lucrative last-minute deals and dropping its shares by 70%. 12 months. On Tuesday, it updated the market two days ahead of schedule to further reduce its underlying operating profit, this time by 11%. She said she did not break the terms of her loan agreements and continue to invest in the company. Shares of the company fell by 33% at the opening in London.

Tesla Inc.Vehicle sales in China fell 70 percent last month compared to last year, the country's tourism car badociation told Reuters on Tuesday, noting that the trade war between Canada and the United States was hitting the American manufacturer of electric cars. An official of the China Pbadenger Car Association said that industry data showed that Tesla had sold only 211 cars in the world's largest car market in October. Reuters said Tesla had not responded to repeated calls and written requests for comment on Tuesday. The maker of electric cars, which imports all cars sold in China, said in October that tariff increases on auto imports had a negative impact on its sales in that country. In July, Beijing raised tariffs on imports of US motor vehicles to 40%, due to the worsening trade stalemate with the United States.

According to the annual report released Tuesday by the private sector body responsible for resolving disputes by customers who could not get satisfaction directly from their provider, the number of complaints filed with Canadian telecommunications providers has increased significantly . The 14,272 complaints filed by Canadian telecommunications and television customers over the 2017-2018 period represent a 57% increase over the previous year, while the total number of issues raised increased by 67% over the previous year. %, to reach 30,734, the Telecom-Television Service Complaints Council. said in his report for the 12 months from August 1, 2017 to July 31, 2018.

Andrew Willis, of the Globe, reports that two of the largest financial institutions in Greece announced Monday plans for a merger under an agreement that better positions the major shareholders. Fairfax Financial Holdings Ltd. for a rebound of the Greek economy. Eurobank, the third largest lender in Greece, plans to acquire real estate investment company Grivalia Properties in a US $ 866 million equity transaction. The agreement significantly strengthens the bank's capital and raises the stock price in the two listed companies on Monday. Eurobank shares jumped 23.8% to 58.5 cents on the news of the transaction, while that of Grivalia jumped 10.6% to 7.93 euros.

Maple Leaf Foods Inc. announced plans to build a poultry processing facility worth $ 660 million Monday in London, Ontario, which is expected to satisfy a growing appetite for meals that revolve around chicken products of superior quality. Mississauga-based Maple Leaf is building a 640,000-square-foot plant in southern Ontario, said Managing Director Michael McCain, "to our knowledge … will be the most technically advanced facility in the world."

United Technologies Corp On Monday, the group would split into three companies made up of the aerospace, elevator and building sectors, which would make it the last industrial conglomerate to continue such a split. The decision comes on the heels of this month's $ 30 billion US acquisition of avionics maker Rockwell Collins, which has allowed its aerospace business to become a stand-alone company.

More reading:

Small caps on Tuesday to watch

Economic News

(9 pm ET) Case-Shiller housing price index from the US S & P (20 cities) for September. The street expects an increase of 0.3% from August and 5.3% from one year to the next.

(9 h 00 min.) FHFA US Housing Price Index for September. The consensus is an increase of 0.4% from August and 5.9% from one year to the next.

US Conference Board Consumer Confidence Index for November. The consensus is a reading of 136.1, down from 137.9 in October.

With Reuters and the Canadian press