Market news | LesAffaires.com

Oil is flowing in pipelines, but Canadian crude is stuck on the coast. (Photo: 123RF)

News Basics

• The Federal Reserve is still looking for ways to combat inflation without hurting employment. The healthy finances of American banks, businesses, and households, which US Federal Reserve officials have touted during the pandemic as a source of resilience, may be an obstacle to fighting inflation in an economy that has so far been able to pay for higher interest rates.

• Oil flows through pipelines, but Canadian crude oil is stuck on the coast. After being heavily discounted for years due to pipeline shortages, Canadian heavy crude is finally traded as a high-quality product from “North America”, moving along with sour US crude sold on the Gulf Coast after Enbridge’s “Late 3 pipeline extension” last year .

• Tesla production in China fell more than Musk expected. Production at Tesla’s Shanghai plant is on track to decline by more than a third this quarter from the first three months of the year, as factory shutdowns in China caused more disruption than expected.

• Target increases quarterly earnings by 20% despite pressure on margins. Target raised its quarterly dividend by 20% to $1.08 per share, despite the retailer warning earlier this week of falling profit margins.

• The US FTC sets high standards for an antitrust settlement with Facebook. US Federal Trade Commission (FTC) Chair Lina Khan, who has pledged stricter antitrust enforcement, said she would not rule out a settlement deal with Meta-owned Facebook, which the agency filed in 2020, but said the barrier is high for any settlement.

(Re)read all market news

Directions before opening

The main Canadian stock index futures rose slightly, following the bullish trend seen on Wall Street where Tesla and other growth caps were on top.

European stocks decline in anticipation of the European Central Bank monetary policy meeting.

In Asian markets, the Japanese Nikkei index ended the session higher, benefiting from the easing of health measures against Covid-19, which raised concerns about regional economic growth, while Chinese stock markets were in negative territory, affected by the lower growth ceiling.

Oil prices are falling. The US dollar is losing strength as gold prices are flat due to advances in Treasuries.

Recommendations

• Dollarama: RBC raised its price target from C$79 to C$81 after the company reported strong earnings per share in the first quarter.

• Suncor Energy: Credit Suisse raised its price target from C$58 to C$63 due to the company’s very good refining margins.

• Across continents: Scotiabank cut its price target from C$23.5 to C$21 as the company comes under pressure from rising raw material costs and start-up costs for new contracts.

The main indicators on the agenda

No major indicators expected today.

publish results

June 9

Saputo: Earnings per share for the fourth quarter forecast 0.25 Canadian dollars

Transat AT: C$2.42 forecast second-quarter loss per share

June 10

No major results are expected to be published.

company agenda

10:00 AM Bragg Gaming Group: Annual general meeting of shareholders

10:00 AM in Transat AT: Q2 earnings conference call

12:00 p.m. Eye care groups: Annual general meeting of shareholders

12:00 Touchstone Explore: Annual general meeting of shareholders

1:00 p.m. First gold mining: Annual general meeting of shareholders

2:30 p.m. Saputo: Q4 earnings conference call

3:00 PM BMTC Group: Annual general meeting of shareholders

4:30 p.m. Alexco resource: Annual general meeting of shareholders

5:00 p.m. Copper Mountains mining: Annual general meeting of shareholders

5:00 p.m. Liberty Gold: Annual general meeting of shareholders

5:00 PM Salona Global Medical Device: Q4 earnings conference call

5:00 p.m. Taseko Mines: Annual general meeting of shareholders

6:00 p.m. Eldorado Gold: Annual general meeting of shareholders

Coupon seconds

Dye and Durham: Amount of 0.01 Canadian dollars

Primo water: $0.07 USD

Rogers Communications: 0.50 CAD as amount

All analyst forecasts are based on I/B/E/S data from Refinitiv.

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