Global stocks were on steadier footing as an expected rate cut from the U.S. Federal Reserve next week improved market sentiment.

Wall Street futures were in positive territory. Dow futures were up 0.2 per cent, S&P 500 futures rose 0.22 per cent and Nasdaq futures were 0.21 per cent higher at 4 a.m. ET.

TSX futures also pointed higher after Canada’s main stock market closed down yesterday, under the weight of sagging commodity prices.

RBC reported a rise in fourth quarter profit, helped by strength in its capital markets segment, and announced a 6-per-cent increase to its dividend.

In Canada, investors are getting results from Royal Bank of Canada, National Bank of Canada, EQB Inc. and Descartes Systems Group Inc.

On Wall Street, markets are watching earnings from Salesforce Inc., Dollar Tree Inc. and Snowflake Inc.

“The market is, more than anything else, still being driven by expectations about the new Fed chair and that [White House adviser Kevin] Hassett might get the job,” Societe Generale’s FX strategist Kit Juckes said,

“The view is that [President Donald] Trump is going to appoint someone that is going to keep rates low no matter what,” Juckes added, given the desire to keep the U.S. economy motoring.

Overseas, the pan-European STOXX 600 was up 0.12 per cent in morning trading. Britain’s FTSE 100 edged down 0.18 per cent, Germany’s DAX gained 0.15 per cent and France’s CAC 40 gave back 0.05 per cent.

In Asia, Japan’s Nikkei closed 1.14 per cent higher, while Hong Kong’s Hang Seng dropped 1.28 per cent.

Oil prices were on the rise, reversing earlier losses, as investors believe Russia-Ukraine peace talks are unlikely to lead to the removal of sanctions on Russian crude, though gains were limited by concerns about an overall supply surplus.

Brent crude gained 1.3 per cent to US$63.23 a barrel, while West Texas Intermediate (WTI) rose 1.5 per cent to $59.49 a barrel.

“Oil markets and prediction markets do not appear to price a large probability of a near-term peace agreement and removal of the sanctions on Russia oil,” Goldman Sachs analysts said in a note.

In other commodities, spot gold was steady at US$4,207.60 an ounce, after falling more than 1 per cent yesterday. U.S. gold futures for February delivery were up 0.3 per cent at US$4,232.05 an ounce.

The Canadian dollar strengthened against its U.S. counterpart.

The day range on the loonie was 71.54 US cents to 7174 US cents in early trading. The Canadian dollar was up about 1.21 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.35 per cent to 99.01 on growing expectations of a more dovish central bank.

The euro rose 0.32 per cent to US$1.1663. The British pound advanced 0.51 per cent to US$1.3282.

In bonds, the yield on the U.S. 10-year note was last down at 4.084 per cent.

Japan and Euro zone services and composite PMI: Business activity in the euro zone expanded at its fastest pace in two-and-a-half years in November as a robust service sector more than offset manufacturing weakness, a survey showed.

8:15 a.m. ET: U.S. ADP National Employment Report for November.

8:30 a.m. ET: Canada’s labour productivity for Q3.

8:30 a.m. ET: U.S. import prices for September. The Street expects a rise of 0.1 per cent for August and up 0.4 per cent year-over-year.

9:15 a.m. ET: U.S. industrial production for September. Consensus is a rise of 0.1 per cent from August with capacity utilization remaining at 75.8 per cent.

9:30 a.m. ET: Canada’s S&P Global Services PMI for November.

9:45 a.m. ET: U.S. S&P Global Services and Composite PMI for November.

10 a.m. ET: U.S. ISM Services PMI for November.

With Reuters and The Canadian Press