Bay Street Seen Opening On Cautious Note

(RTTNews) - The Canadian market is likely to open on a cautious note on Tuesday, tracking weak European stocks and lower crude oil prices.

The focus is on U.S. inflation data, due later in the week. The reports on U.S. consumer and producer price inflation, which are due to be released on Wednesday and Thursday, respectively, could have a significant impact on the outlook for interest rates.

Fed Chair Jerome Powell said following last week's rate hike that the central bank would take a "data-dependent approach" to future monetary policy decisions.

Weak trade data from China is also likely to weigh on sentiment.

In earnings news, George Weston Limited (WN.TO) reported adjusted net earnings of $282 million for the first quarter of 2023, flat compared to the same period in 2022.

Keyera Corporation (KEY.TO) reported first-quarter net earnings of $138 million, compared with $114 million in the year-ago quarter.

SNC-Lavalin Group (SNC.TO) reported first-quarter net ncome of 28.4 million, or $0.16 per share, compared to $24.8 million, or $0.14 per share in the first quarter of 2022.

The Canadian market ended modestly higher on Monday, led by gains in technology and consumer directory sectors. The mood was cautious as investors awaited more data for directional clues.

The benchmark S&P/TSX Composite Index ended with a gain of 43.12 points or 0.21% at 20,585.15 after moving in a tight range between 20,544.15 and 20,627.77.

Asian stocks ended mostly lower today on disappointing trade data from China. Also, investors were wary of making significant moves ahead of key U.S. inflation numbers.

European are down firmly in negative territory as investors await key inflation data from the U.S. for clues about the Federal Reserve's likely stance on policy tightening.

In commodities, West Texas Intermediate Crude oil futures are down $0.77 or 1.07 percent at $72.39 a barrel.

Gold futures are gaining $6.20 or 0.32% at $2,039.40 an ounce, while Silver futures are down $0.074 or 0.29% at $25.760 an ounce.