Summer's over and it's back to work for North American traders today. North Korea dominated sentiment in overseas trading to start the week as traders digested the rogue nation's latest nuclear test and reports an ICBM test could be coming soon.
Overnight the impact was seen more in Japan where the NIKKEI fell 0.6%. In Europe on the other hand, the Dax is up 0.6% while the FTSE is steady. US index futures are trading down 0.3% this morning.
It's a light day for economic news so trading in stocks today may focus on two big corporate deals reached over the long weekend. In the US, aerospace and defence stocks could be active as United Technologies has agreed to acquire Rockwell Collins for $23B. In Canada, Canadian Natural has agreed to purchase heavy oil assets in the Pelican Lake area from Cenovus for $975M.
Energy related markets may also be active as the Gulf Coast continues to dig out from Hurricane Harvey. The prospect of ports, pipelines and refineries reopening has last week's action being unwound. WTI is up 1.4% when gasoline is down 3.2%.
In currency markets today, the US Dollar is trading down slightly relative to other major currencies but up on gold. GBP continues to bounce back relative to EUR amid rumours of more Brexit talks being proposed to get things moving and preparations underway to start debate on the Great Repeal Brexit bill in Parliament.
CAD may also attract attention today between oil action, reaction to weekend NAFTA talks and anticipation of a hawkish Bank of Canada at tomorrow's meeting.
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