The news shaping the markets today

Russia urged global powers to ensure Ukraine ceased attacks on the Zaporizhzhia nuclear power plant. WTI crude oil futures traded lower this morning.

South Korea’s Composite Consumer Sentiment Index fell to 86.5 for November, down 2.3 points from October’s reading. Despite this, the KRW/USD pair rose in forex trading this morning.

Israel’s central bank raised its key interest rate by 50bps to 3.25% at its recent meeting. However, the ILS/USD forex pair remained under pressure.

The Chicago Fed National Activity Index fell to -0.05 in October, versus a reading of +0.17 in the prior month, exerting pressure on the US dollar index.

Macau’s annual inflation rate eased for the third month to 1.02% in October, from 1.12% in the earlier month. However, the MOP/USD pair declined in forex trading this morning.

What’s happening: Shares of The Walt Disney Company gained on Monday after the company announced a change in leadership.

What happened: Disney said that Robert A. Iger will return to lead the company as Chief Executive Officer, effective immediately.

Iger replaces Bob Chapek, who became the CEO in February 2020, and under whose leadership the company’s shares have lost significant value.

Why it matters: Iger joined the company’s senior management team as Chairman of the Disney-owned ABC Group in 1996 and took an additional role of President of Walt Disney International after just three years. He took over the role of Chief Operating Officer and President of Disney in 2000 and became the CEO of the company in 2005.

Iger stepped down as the CEO of the company in 2020 and resigned as Chairman in 2021.

Iger has now joined as Disney’s CEO for two years and will be working closely with the company’s board to “set the strategic direction for renewed growth.” He will also work with the board to develop a successor.

The recent news came just months after the company’s board voted to extend Chapek’s contract for another three years. However, Chapek’s tenure remained embroiled in controversies, which resulted in a sharp decline in the stock. Since he took over as CEO in late February 2020, shares of Disney have lost around 19%, while the S&P 500 has gained about 34% over that same period.

According to a recent Reuters report, Bob Chapek issued an internal memo for job cuts and a targeted hiring freeze.

The entertainment giant recently reported weaker-than-expected sales and earnings for its fourth quarter, despite strong growth in subscribers. Its Disney+ streaming service reported 164.2 million subscribers in the fourth quarter, beating market expectations of 161 million.

How shares responded: Disney’s shares surged as much as 9% during early trading but closed higher by 6.3% at $97.58 on Monday. The stock has lost around 38% year to date.

What to watch: Investors will keep an eye on Iger’s action plan to target renewed growth for the company.

The markets today

The Canadian dollar will be in focus today ahead of basket of economic reports

Context: The loonie moved lower, falling to its weakest level in eleven days against the US dollar on Monday.

Details: China reporting a rise in covid-19 cases provided support to the safe-haven US dollar on Monday, as new restrictions in the country raised concerns around the global economic outlook.

The US dollar index, which measures the greenback’s performance versus a basket of major rivals, gained around 0.9% to 107.84 on Monday.

The decline in oil prices also exerted some pressure on the loonie earlier in the session, as Canada is a major producer of the commodity. WTI crude oil prices fell more than 5% at one point on Monday but settled lower by 35 cents at $79.73 per barrel.

Meanwhile, recent CPI data showed that the country’s consumer price index accelerated 6.9% year-over-year in October, compared to a 39-year high of 8.1% in June. Producer prices in Canada also climbed 2.4% from a month ago in October, the most since March, which increased speculations of the Bank of Canada raising its interest rates by between 25bps and 50bps at its December meeting.

The CAD/USD forex pair traded lower by around 0.5% at 1.3453 on Monday, hitting its lowest level since November 10. The country’s S&P/TSX Composite Index fell 0.02% to settle at 19,977.13.

What are expectations: Traders await data on retail sales, wholesale sales and new home prices from Canada today. Retail sales in Canada are expected to decline by 0.5% in September, while wholesale sales are projected to rise by 0.4% in October. New home prices for Canada, which fell 0.1% in September, is projected to decline by 0.3% in October. Analysts expect total manufacturing sales in Canada to grow 0.2% in October.

Other Markets: European trading indices closed lower on Monday, with the FTSE 100, DAX 40, CAC 40 and Stoxx Europe 600 down by 0.12%, 0.36%, 0.15% and 0.06%, respectively.

Support & resistances for today

Market snapshot

What else to watch today

South Africa’s leading business cycle indicator and SACCI business confidence index, Turkey’s consumer confidence indicator, UK’s public sector net borrowing, Eurozone’s current account and consumer confidence indicator, Italy’s current account, Mexico’s retail sales, US Redbook index, Richmond Fed services index and Richmond Fed manufacturing index, as well as Argentina’s balance of trade.

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