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Global Stocks Start Week Strong; Oil Prices Begin to Rebound
Published February 12, 2018
USD/CAD remains steady this morning as global markets are poised to make a slight recovery from the volatility of the last two weeks; improving oil prices and stronger equity markets are supporting the Canadian dollar as the markets moves away from a risk-off sentiment.
Oil prices are up this morning after suffering their worst weekly losses in two years; prices for Brent crude and WTI are rebounding after shaving off nearly 10% of their value last week, a move largely brought on by increasing US oil production.
Global equities started the week on a stronger footing, showing a modest recovery after a turbulent week that wiped off nearly $1 trillion in market capitalization value; Asian markets closed 1% higher while European indices moved off from 6-month lows.
US stock futures point to a higher open this morning, suggesting that New York exchanges could extend the rebound seen at the end of last week. US 10-year treasury yields ascended to 2.902% (a level not seen since January 2014), worrying analysts that bonds may still yet pull investors away from equities.
There is little data of note for today. Global markets will look for direction from improving stock markets as well as consumer inflation numbers out of the US on Wednesday.