Here are five things you need to know this morning:
Inflation slows to 3-year low: Canada’s headline inflation rate decelerated to 1.6 per cent in September. That’s lower than what analysts were expecting and now down to the lowest level since early 2021. Cheaper gasoline was the biggest factor in the cooldown. If gas was stripped out of the numbers, the rate would have been 2.2 per cent. That’s the same as it was the previous month. If food and energy were both stripped out, the rate would have been 2.4 per cent – also the same as the previous month’s pace.
Oil falls: The price of oil is falling this morning after a report suggested that Israel may avoid targeting Iranian energy infrastructure. West Texas Intermediate was down by almost six per cent at one point to dip below US$70 a barrel, while Brent fell below $74. The Washington Post reported this weekend that Israel told the Biden administration it is willing to stick to targeting military facilities in its conflagration with Iran. That has removed the main thing pushing up oil prices and returned focus on fundamentals which show the market is currently oversupplied.
Boeing seeks to raise US$25B: Boeing has taken the first steps toward raising US$25 billion in new debt and equity in a bid to boost its financial resources enough to withstand an ongoing worker strike. The aerospace giant filed a so-called shelf with regulatory authorities on Tuesday morning; a filing that allows it to make up either debt or equity or a combination of both.
Goldman Sachs profit surges: Profits at Goldman Sachs surged 45 per cent in the third quarter on a surprise increase in stock-trading revenue and booming investment banking business. The lender’s shares have been the best performing among the top U.S. banks this year, up 36 per cent to hit an all time high on Monday. And that was before the latest quarterly results came out; numbers that boosted the stock another three per cent in the premarket.
China stocks selling off again: China’s main stock index is selling off on Tuesday, as doubts resurface on whether the government’s stimulus spending will do enough to help the economy. Chinese equities have been especially volatile in recent weeks as investors focus on the lack of specifics from Beijing about its plans. Weak economic data, including on inflation and trade, show the economy is weakening, but there is still no concrete plan in place to change that.