UBS Global Wealth Management advises buying the Canadian dollar against the Japanese yen, targeting a level of 91 in CAD/JPY and placing a stop loss at 85. CAD/JPY is last up 0.4% at 87.9750. "We think the Canadian dollar should be supported by higher oil prices and the continued normalization of economic activity across the globe," UBS analysts say. The CAD should also receive a boost Wednesday when the Bank of Canada is likely to taper bond purchases further, the analysts say. The BOC will probably end quantitative easing by January next year and raise interest rates in July 2022, they say. In contrast, the Bank of Japan will maintain its patient approach as inflation isn't a concern, they say.
Taseko Mines' Lower-Than-Expected Production Seen as Negative for Shares
Taseko Mines' production in the second quarter is a negative for its shares, according to Scotiabank. The Canada-based copper producer said its Gibraltar mine in B.C. produced 27 million pounds of copper and 400,000 pounds of molybdenum, compared with 36.8 million pounds and 644,000 pounds, respectively, in the second quarter of 2020. Scotiabank says this quarter's results were 14% and 28% below its estimates of 31 million pounds of copper and 558,000 of molybdenum. "Overall, we view the update as negative for the shares given the markedly lower second-quarter copper production," the bank says. Shares are down 6.5% at C$2.29.
Expected Major Events for Friday
06:00/UK: May Index of production
06:00/UK: May UK trade
06:00/UK: May Index of services
06:00/UK: May Monthly GDP estimates
08:00/ITA: May Industrial Production
11:30/UK: Jun NIESR Monthly GDP Tracker
12:30/US: U.S. Weekly Export Sales
12:30/CAN: Jun Labour Force Survey
14:00/US: May Monthly Wholesale Trade
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Expected Earnings for Friday
ASA Gold & Precious Metals Ltd (ASA) is expected to report for 2Q.
AZZ Inc (AZZ) is expected to report $0.62 for 1Q.
Camber Energy Inc (CEI) is expected to report for 4Q.
Camber Energy Inc (CEI) is expected to report for 1Q.
Cryo-Cell International Inc (CCEL) is expected to report for 2Q.
Greenbrier Cos (GBX) is expected to report $0.15 for 3Q.
InnovAge Holding Corp (INNV) is expected to report for 4Q.
MTY Food Group Inc (MTY.T) is expected to report $0.96 for 2Q.
Medley Management Inc (MDLX,MDLY) is expected to report for 1Q.
Second Sight Medical Products Inc (EYES) is expected to report for 1Q.
Sequential Brands Group Inc (SQBG) is expected to report for 1Q.
Sonoma Pharmaceuticals Inc (SNOA) is expected to report for 4Q.
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ANALYST RATINGS ACTIONS
Aerpio Pharmaceuticals Raised to Buy From Neutral by HC Wainwright & Co.
Charles Schwab Cut to Neutral From Buy by Goldman Sachs
CNX Resources Raised to Buy From Neutral by MKM Partners
DR Horton Cut to Sector Perform From Outperform by RBC Capital
FB Financial Raised to Buy From Neutral by DA Davidson
Flowserve Raised to Outperform From Neutral by Credit Suisse
Freeport-McMoRan Cut to Underweight From Equal-Weight by Barclays
Helmerich & Payne Raised to Neutral From Sell by Citigroup
Range Resources Raised to Buy From Neutral by MKM Partners
Ready Capital Cut to Neutral From Overweight by Piper Sandler
Spirit of Texas Bank Raised to Overweight From Equal-Weight by Stephens & Co.
State Street Raised to Peer Perform From Underperform by Wolfe Research
Texas Capital Bancshares Raised to Overweight From Equal-Weight by Stephens & Co.
TRI Pointe Group Cut to Underperform From Sector Perform by RBC Capital
WesBanco Cut to Market Perform From Outperform by Raymond James
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires