Bay Street Likely To Open On Firm Note

(RTTNews) - Sharply higher U.S. and Canadian futures point to a firm start for the Canadian markets on Wednesday. Global stocks gained in strength today with investors reacting positively to U.S. President Donald Trump's softer tone toward Federal Reserve Chair Jerome Powell, and his admission that the 145% tariffs on China are "very high" and they will come down substantially.

Lower commodity prices may weigh a bit on resources stocks and limit market's upside.

Mullen Group Ltd. (MTL.TO) reported net income of $17.7 million or $0.20 per share for the first quarter, lower than $22.2 million or $0.25 per share in the same quarter a year ago. Revenue for the quarter, however, grew 7.5% to $497.1 million from $462.6 million in the previous year.

Data on Canada new housing prices is due at 8:30 AM ET.

The Canadian market ended sharply higher on Tuesday, more than offsetting the pullback seen in the previous session. The benchmark S&P/TSX Composite Index surged early in the session and remained firmly positive throughout the day before closing up 297.12 points or 1.2% at 24,305.98.

Considerable strength was visible among energy stocks, as reflected by the 2.1% jump by S&P/TSX Capped Energy Index. The rally by energy stocks came as the price of crude oil saw a significant rebound after the U.S .Treasury Department announced sanctions targeting Iranian national and liquified petroleum gas magnate Seyed Asadoollah Emamjomeh and his corporate network.

Asian stocks followed Wall Street higher on Wednesday after U.S. President Donald Trump backed down from threats to dismiss Federal Reserve Chair Jerome Powell and also signaled that 145 percent tariffs on Chinese imports will "come down substantially".

However, Trump noted that he would set the terms of a deal if Beijing did not enter talks.

European stocks are up sharply after U.S. President Donald Trump toned down his rhetoric on Jerome Powell, saying he would like to see him be a little more active in terms of his idea to lower interest rates but have no intention to fire him. Additionally, Trump also admitted that the 145 percent tariffs on China are "very high" and they will come down substantially.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.78 or 1.18% at $63.53 a barrel.

Gold futures are down $84.30 or 2.47% at $3,335.10 an ounce, while Silver futures are down $0.060 or 0.18% at $32.840 an ounce.