BEFORE THE BELL: Quarterly earnings reports win out over trade war concerns; Suncor warns of oil production cut until September
Trade war concerns are being put aside this week as investors look to strong earnings reports.
The quarterly reports from big businesses, tech companies and banks are expected to roll out with mostly positive results. This follows a US jobs data report which showed more economic growth as over 200,000 new positions were created. Asian markets have already started growing on this positivity. The Nikkei grew 1.2 per cent in overnight trading to close at 22,052. Experts suggest that will spread to the global market trend today. However, analysts warn the rising tension between the US and China could put a dent in investor confidence once again.
Meanwhile, US crude is slipping again to 73.66 a barrel. This comes as Suncor reports its Syncrude facility in Northern Alberta won’t be back up to full production until September. Some production will start up later this month however. The facility cut oil flow in late June due to a power supply issue.
The Bank of Canada will make a decision on the interest rate this week. Many analysts suggest there’s a strong chance the BoC will hike the rate up about a quarter of a per cent.
The Loonie is gaining to 76.44 cents US ahead of that decision.