All three major US stock indexes were down in late-morning trading Friday, with the Dow Jones Industrial Average down over 1%, as stocks fell after the release of a hotter-than-expected producer price index earlier in the day. The US Producer Price Index rose by 0.5% in January, well above the 0.3% gain expected in a survey compiled by Bloomberg and up from the 0.4% rise in December.
The European stock markets were mostly higher in Friday trading as The Stoxx Europe gained 0.2%, Germany's DAX was up 0.1%, the FTSE 100 rose 0.7%, France's CAC was off 0.5%, and the Swiss Market Index increased 0.7%. In France, GDP decelerated in Q4, expanding 0.2% after growing 0.5% in Q3, according to the Institute of Statistics and Economic Studies, or INSEE.
US producer prices rose at the fastest pace in four months in January as growth in the services index hit the highest since July, government data showed Friday. The producer price index increased 0.5% on a seasonally adjusted basis, accelerating from a 0.4% rise in December and representing the biggest gain since September, the Bureau of Labor Statistics said.
US construction spending rose by 0.3% in December, compared with a 0.2% increase expected in a survey compiled by Bloomberg and following a 0.2% decrease in November.
The Canadian economy contracted modestly in Q4, although it ended the quarter on a slightly better footing than originally estimated, said CIBC after Friday's gross domestic product data release.
Canadian real gross domestic product rose 0.2% month over month in December, driven by increases in both services-producing and goods-producing industries, said the country's statistical agency on Friday. December's GDP growth beat a 0.2% month-over-month consensus contraction provided by Scotiabank.
The US Producer Price Index rose by 0.5% in January following a 0.4% increase in December, well above a 0.3% gain expected in a survey compiled by Bloomberg. Energy prices fell by 2.7% in the month, while food prices declined by 1.5%. After excluding food and energy prices, core PPI rose by 0.8%, well above the 0.3% gain expected and following a 0.6% gain in the previous month.
Canada gets a trio of gross domestic product readings at 8:30 a.m. ET on Friday, said Scotiabank. Key will be how it relates to the Bank of Canada's expectations for 0% Q4 growth and a 1.8% rebound in Q1, noted Scotiabank.
Investors will receive Canada's Q4 and December gross domestic product data on Friday and they should confirm that the local economy, at best, is flattening out, said Rosenberg Research. At the same time, the Bay Street view that everything is "okay"with the Canadian economy and surely nothing for the Bank of Canada to get too excited about, noted Rosenberg Research.
The US dollar was mixed against its major trading partners early Friday -- up versus the euro and pound, down versus the yen and Canadian dollar -- ahead of the release of producer price index data for January at 8:30 am ET, the Chicago purchasing managers' index for February at 9:45 am ET and construction spending for December at 10:00 am ET.
Zimbabwe's central bank Friday said its Monetary Policy Committee decided to keep its Bank Policy Rate at 35.0%. "The tight monetary policy stance adopted by the Reserve Bank since September 2024 has engendered a progressive disinflation trajectory and delivered a singledigit inflation starting in January 2026," wrote the central bank in its policy statement.
The province of Alberta in Canada is budgeting for a larger deficit in the upcoming fiscal year, with a $9.4 billion shortfall, or 1.9% gross domestic product, up from a revised $4.1 billion, 0.8% GDP, estimate for the outgoing year, said CIBC.
Weekly applications for unemployment insurance in the US rose less than estimated, while continuing claims decreased, government data showed Thursday. For the week through Feb. 21, the seasonally adjusted number of initial claims increased by 4,000 to 212,000 from the previous week's average that was adjusted upwards by 2,000, the Department of Labor said.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. We increase our 12-month target price by CAD25 to CAD305, 17.4x our FY 27 EPS view of CAD17.55, a wider risk premium than the peer average of 12.7x given its scale and superior earnings profile. MT Newswires does not provide investment advice.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. We increase our 12-month target price by USD23 to USD223, 17.4x our FY 27 EPS view of CAD17.55, a wider risk premium than the peer average of 12.7x given its scale and superior earnings profile. MT Newswires does not provide investment advice.
The Kansas City Federal Reserve's manufacturing index rose to 5 in February from 0 in the previous two months. The ISM's national manufacturing reading will be released on March 2. Initial jobless claims increased by 4,000 to 212,000 in the week ended Feb. 21, lifting the four-week moving average by 750 to 220,250.
The European stock markets were set to close mixed in Thursday trading as The Stoxx Europe was unchanged, Germany's DAX rose 0.4%, the FTSE 100 was up 0.4%, France's CAC gained 0.7%, and the Swiss Market Index was down 0.5%. The Economic Sentiment Indicator for February decreased in both the EU and the euro area, falling 1 point to 98.3 for each, according to the European Commission.
Alberta will release its 2026-27 budget at around 5:15 p.m. ET on Thursday, said Scotiabank. While the province recorded a sizeable surplus of $8.3 billion, or 1.8% of gross domestic product, in 2024-25, lower oil prices and higher spending on health and education have pushed the province into the red this year, noted the bank.
The Kansas City Fed monthly manufacturing index rose to a reading of 5 in February from 0 in January, higher than expectations for an increase to 2 in a survey compiled by Bloomberg. The increase follows expansion in readings for the other regional manufacturing data released so far.
Botswana's central bank Thursday said its Monetary Policy Committee decided to maintain the Monetary policy Rate at 3.50%. "The economy is expected to continue to operate below full capacity in the short-to-medium term, therefore subdued demand-driven inflationary pressures," wrote the central bank in its policy statement."
Bank of Montreal on Thursday said an improving current account deficit over recent quarters reflects a recovery from peak trade uncertainty in Q2, while a return to net foreign direct investment inflows is welcome. BMO noted Canada's current account deficit narrowed to $700 million, $2.8 billion a.r., in Q4, following a shortfall of $5.3 billion, or $21.1 billion a.r., in Q3.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Royal Bank of Canada (RY) beat Q1 FY 26 earnings with operating EPS of CAD4.08 vs. MT Newswires does not provide investment advice.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Royal Bank of Canada (RY) beat Q1 FY 26 earnings with operating EPS of CAD4.08 vs. MT Newswires does not provide investment advice.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Royal Bank of Canada (RY) beat Q1 FY 26 earnings with operating EPS of CAD4.08 vs. MT Newswires does not provide investment advice.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Royal Bank of Canada (RY) beat Q1 FY 26 earnings with operating EPS of CAD4.08 vs. MT Newswires does not provide investment advice.
US stocks looked set to open little changed Thursday as investors digested major earnings reports as well as the latest initial jobless claims report. Dow Jones Industrial Average futures were down 0.2%, S&P 500 futures were off 0.1%, and Nasdaq futures were marginally lower.
Canada's current account deficit on a seasonally adjusted basis narrowed by $4.6 billion to $0.7 billion in Q4 2025, said the country's statistical agency on Thursday. Q4 marked the 14th consecutive quarter in which the current account balance was in a deficit position, noted Statistics Canada in a statement.
US initial jobless claims rose to a level of 212,000 in the week ended Feb. 21 from an upwardly revised 208,000 level in the previous week, compared with expectations for a larger increase to 216,000 in survey of analysts compiled by Bloomberg. The four-week moving average rose by 750 to 220,250 after decreasing by 500 to a level of 219,500 in the previous week.
TD Securities raised its price target on National Bank of Canada (NTIOF) to $182 from $175 on Thursday. Analyst Mario Mendonca maintained a Hold rating on shares of the Canadian bank following its quarterly results on Wednesday. "NA beat our estimate on strong trading revenue & lower PCLs," Mendonca said in a note to clients.
Canada will release the current account deficit for Q4 at 8:30 a.m. ET, said Bank of Montreal. The bank looks for the Q4 current account deficit to narrow to $3.8 billion, or $15.0 billion a.r., in Q4. Meantime, the smaller services account is expected to deteriorate on a recovery in imports of travel services.
The US dollar rose against its major trading partners early Thursday, except for a decline versus the yen, ahead of the release of weekly jobless claims data at 8:30 am ET. Federal Reserve Vice Chair for Supervision Michelle Bowman is due to speak at 10:00 am ET, followed by weekly natural gas stocks inventory data at 10:30 am ET.
Sterling has strengthened at the start of this week, resulting in EUR/GBP falling back towards the 0.8700 level, after hitting a high last week of 0.8752, noted MUFG.
Royal Bank of Canada (RY) reported fiscal Q1 adjusted earnings Thursday of 4.08 Canadian dollars per diluted share, up from CA$3.62 a year earlier. Analysts polled by FactSet expected CA$3.85. Revenue for the quarter ended Jan. 31 was CA$17.96 billion, compared with CA$16.74 billion a year earlier. Analysts surveyed by FactSet expected CA$17.52 billion. MT Newswires does not provide investment advice.
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