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Feel good factor keeps world stocks near record highs, oil jumps – Reuters

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LONDON (Reuters) – World stocks held near record highs on Monday as generally better data and earnings bolstered sentiment, while oil prices hit their highest in over a week after two large crude production bases in Libya began shutting down following a blockade.

FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville

European equities opened a touch lower, while U.S. stock futures were down marginally.

Trading was light with U.S. markets closed for the Martin Luther King Jr. holiday. Still, the week was expected to bring plenty of direction given central bank meetings, earnings, closely-watched business activity data and the annual meeting of the World Economic Forum in Davos.

While investors took some money off the table on Monday, sentiment was supported by signs that the economic outlook has improved, aided by an easing of trade tensions between the United States and China – the world’s two biggest economies.

“The feel-good factor appears to be driven by a number of factors including better than expected economic data, as well as the dialing back of trade tensions between the U.S. and China as the low-hanging fruit of a phase one trade deal was being signed off,” said Michael Hewson, chief market analyst at CMC Markets.

“If you also toss into the mix some better than expected earnings reports from U.S. banks and other multinationals, it makes a heady cocktail of optimism on which to push stock markets higher.”

MSCI’s s all-country index is up almost 2.5% for the first three weeks of the year and was holding near record highs on Monday along with Wall Street and European benchmark equity indices.

Just three weeks into the new year, the S&P 500 has gained just over 3% and the NASDAQ almost 5%.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was flat having risen to its highest since June 2018. Japan’s Nikkei added 0.2% to be near its highest in 15 months.

Chinese shares stayed strong with the blue-chip CSI300 index rising 0.7%, while China’s yuan hit a new six-month high.

U.S. corporate earnings this week include Netflix, Intel Corp and Texas Instruments, while the European Central Bank, Bank of Canada and Bank of Japan hold policy meetings.

“In 2020 we don’t expect the pace of growth to slow as much as it did last year,” said Mark Haefele, chief investment officer at UBS Global Wealth Management.

“Accommodative policy and the reduction of downside risk following the signing of the Phase 1 U.S.-China trade deal will help support the economy and risk assets.”

OIL JUMP

Oil prices rose to their highest in more than a week after two large crude production bases in Libya began shutting down after forces loyal to commander Khalifa Haftar closed a pipeline.[O/R]

Brent crude futures rose almost 1% to $65.49 a barrel, while U.S. crude jumped 0.8% to $59.02.

In currency markets, a string of mostly solid U.S. data helped underpin the dollar.

Figures on Friday showed U.S. homebuilding surged to a 13-year high in December and a gauge of manufacturing activity rebounded to its highest in eight months.

The dollar last traded at around 110.17 yen, not far off an eight-month peak of 110.305 last week.

The euro was stuck at $1.1093, while sterling was roughly a quarter of a percent weaker against the euro and dollar. A string of poor British economic news has fanned speculation about a cut in interest rates soon, weighing on sterling.

Elsewhere, gold was a tad firmer at around $1,560 per ounce, having hit a seven-year high earlier this month at the height of Iran-U.S. tensions.

Reporting by Dhara Ranasinghe; Additional reporting by Wayne Cole in Sydney; Editing by Andrew Cawthorne

Our Standards:The Thomson Reuters Trust Principles.

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Carry On Canadian Business. Carry On!

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October 22, 2024

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Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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October 22, 2024

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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October 22, 2024

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

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