First Look With Surveillance: China Banks, US-EU, Crypto
Wall Street is getting back to business – albeit on an abbreviated basis – after yesterday's U.S. Thanksgiving holiday trading break. Futures are fluctuating so far, but seem to be pointing to a modestly higher open when things get underway at 9:30 a.m. EST. Investors are mulling the prospect for less aggressive central bank rate hikes and China's latest move to stimulate the economy as COVID cases surge, after Beijing eased reserve requirements for banks for the second time this year. Worth noting, the day after Thanksgiving is typically very thin on volume, given many traders take the extended long weekend rather than heading back to the desk.
ALBERTA CUTS SURPLUS FORECAST
Alberta is taking a scalpel to its budget surplus forecast by about $1 billion after rolling out a slew of measures aimed at easing the pain of sky-high inflation. The province now expects a surplus of $12.3 billion this fiscal year – down from the $13.2 billion estimate back in June – reflecting a $2.5 billion increase in expenses, of which no small part is tied to measures like a break in the gas tax unveiled earlier this week. We'll get more insight when Paul speaks with Alberta Finance Minister Travis Toews at about 10:30 a.m. EST.
A KEY BLACK FRIDAY FOR RETAILERS
We're getting into the meat of the holiday shopping season, and whoo boy, does this Black Friday seem like a key one for Canadian retailers. Between concerns over consumers tightening their hold on the pocketbook amid sky-high inflation and the fact many retailers book their busiest months in the lead up to the holidays, we'll be looking for any signs of how this pivotal shopping weekend is shaping up. Worth harkening back to the CFIB small business confidence poll released yesterday, which said confidence has fallen to the lowest level since the depths of the 2020 recession.
OTHER NOTABLE STORIES
- Allied Properties REIT has confirmed that it is exploring the sale of its urban data centre portfolio, which the company values at about $1.3 billion.
- Prime Minister Justin Trudeau is set to testify at a public inquiry into his decision to invoke emergency powers to quell the convoy protest that blockaded much of downtown Ottawa.
- Shares of Activision Blizzard are falling in the premarket, down some three per cent on that Politico report regulators may move to block its US$69 billion sale to Microsoft.
- Oil prices are stabilizing – up about two per cent so far this morning, though still below US$80 per barrel – as the EU continues to mull what price it will impose as a cap on Russian exports.
- Notable earnings: Boardwalk REIT
- U.S. markets close early at 1:00 p.m. EST, bond markets close at 2:00 p.m. EST
- Black Friday