First Look With Surveillance: Debt Deal, OPEC+ Faces
North American equity market futures are pointing to a modestly higher open after the U.S. Senate passed a bipartisan deal to increase the country’s debt ceiling, ending the threat of a federal default. American president Joe Biden is expected to sign the bill today, making it law. Investors are now turning their attention to the U.S. jobs data due out this morning for insight on the Federal Reserve’s next move and whether the central bank will be able to pause its tightening cycle. The next Federal Open Market Committee meeting is scheduled for June 14.
SPRING SURGE IN TORONTO REAL ESTATE CONTINUES
Toronto’s housing market recovery continued in the month of May with sales and home prices rising for the fourth consecutive month. Numbers released by the Toronto Regional Real Estate Board show the average price of a home reached $1,196,101 in May compared with $1,153,277 in April. Sales increased by 5.2 per cent month over month on a seasonally adjusted basis. New listings increased by 10.1 per cent in May as more homeowners put their properties on the market, however that is down 18.7 per cent from the same period a year ago. TRREB Chief Market Analyst Jason Mercer said demand for ownership housing has picked up in recent months, as “many homebuyers have recalibrated their housing needs in the face of higher borrowing costs and are moving back into the market.”
SUNCOR TO CUT 1,500 JOBS BY END OF 2023
Suncor Energy is set to cut 1,500 employees by the end of 2023. Staff were informed in an email sent by CEO Rich Kruger on Thursday. The move is an effort to reduce costs and improve the company’s financial results and it will affect employees across the country. Kruger took over the top job on April 3rd and is under pressure from shareholders to turn around the oil sands giant and improve its financial performance, which has trailed its peers.
META TO TEST BLOCKING NEWS AHEAD OF NEW LAW
Meta is preparing to block news for some Canadians on its Facebook and Instagram platforms, which will affect up to five per cent of its 24-million users in this country. The move is in response to the Federal government’s Bill C-18, which is designed to force companies like Meta and Google to negotiate with Canadian news publishers to pay them for content. The legislation is currently in the Senate and could become law by the end of June. The tech giant has said it would prefer to block news content in Canada rather than be forced to pay for it, and will block news content permanently if the Online News Act passes.
OTHER NOTABLE STORIES
- Shares of Lululemon are surging in the pre-market trade after the company topped earnings expectations and raised its full-year sales and profit forecasts
- The price of West Texas Intermediate is on the rise, hovering around the US$71 a barrel mark, ahead of the OPEC+ meeting over the weekend. It is widely expected the cartel will keep output levels unchanged.
- Shares of Dell are trading lower ahead of the opening bells after the company said it expects sales this fiscal year to be down 15 per cent from the year before
- Notable data: Real Estate Board of Greater Vancouver (REBGV) home sales, U.S. Employment Report