Before the Bell: Canadian markets cautious after bond rout

Market stress remained high after a global rout in bonds, driving investors toward gold while futures pointed to modest gains for Wall Street and the TSX ahead of scheduled economic reports and a presidential speech.

Market stress remained elevated after a global rout in bonds that pushed investors toward safe-haven assets such as gold. Global equity trading was cautious amid geopolitical headlines about U.S. comments on Greenland and ahead of a U.S. presidential speech in Davos. Futures showed modest gains for Wall Street and the Toronto Stock Exchange following recent selloffs. Commodity and currency moves accompanied the risk shift, with oil weakening and the Canadian dollar softer. Key market facts: - A global bond selloff left market stress high and spot gold climbed about 2.1%, reaching US$4,862.19 an ounce after an intraday record of US$4,887.82, while U.S. gold futures also rose. - Wall Street and TSX futures pointed to modest gains after a major selloff in previous sessions. - Oil prices fell, with Brent futures down about 1.5% to US$63.95 a barrel and West Texas Intermediate down about 1.3% to US$59.58 a barrel. - The Canadian dollar weakened, trading in a range near 72.23–72.34 U.S. cents, and was about 1.18% lower versus the U.S. dollar over the past month. - The article mentions that markets are watching earnings from Johnson & Johnson, Charles Schwab, Prologis, TE Connectivity, Kinder Morgan, Halliburton and Travelers. Summary: Market sentiment is cautious after bond markets pressured risk assets and prompted flows into gold. Key events ahead include a U.S. presidential speech at the World Economic Forum and several scheduled Canadian and U.S. economic releases, which market participants are watching for further direction.