Global Markets Rally on Rate Cut Hopes

Good news for investors! Global stock markets are on the rise today, following disappointing U.S. labor data that strengthens the case for an interest rate cut coming this month. Wall Street futures are pointing upward after last week's downturn, as investor sentiment rebounds from the soft jobs report.

Meanwhile, Canadian markets are also buoyed by expectations of a Bank of Canada interest rate cut, leading the TSX to new record heights last Friday. Notable earnings reports are on the horizon, including those from Major Drilling Group International Inc. and North West Co. Inc.

Expectations of Fed Rate Cuts

George Boubouras, head of research at K2 Asset Management, believes the Federal Reserve will cut rates by 25 basis points this month, with potentially two more cuts in the next six months.

International Market Movements

Across Europe, the pan-European STOXX 600 index climbed by 0.38%, while major indices such as Britain's FTSE 100, Germany's DAX, and France's CAC 40 also posted gains. In Asia, Japan's Nikkei surged 1.45% and Hong Kong's Hang Seng was up by 0.85%.

Oil Prices Surge on Sanction Prospects

On the commodities front, oil prices are rebounding from last week’s losses, prompted by potential new sanctions on Russian crude following a recent escalation in Ukraine. Brent crude has risen by 1.95% to $66.78 per barrel, while West Texas Intermediate (WTI) is also up 1.94% to $63.07. Analysts suggest that the modest output increases from OPEC+ and tightening supply expectations are lifting market sentiment.

Gold is also in the spotlight, with spot prices increasing by 0.9% to $3,617.76 an ounce after reaching a record high earlier in the session.

Currency and Bond Updates

The Canadian dollar is strengthening against its U.S. counterpart, trading between 72.22 and 72.52 US cents in early trading. Over the past month, it has slid about 0.11% against the greenback. Meanwhile, the U.S. dollar index has dipped by 0.18%.

In other currencies, the euro gained 0.19% to $1.1742, and the British pound rose 0.23% to $1.3541. Bond yields are slightly down, with the U.S. 10-year note yielding 4.070%.

Corporate Developments