Bay Street Seen Opening On Mixed Note

(RTTNews) - Canadian shares are likely to open on mixed note Thursday morning, with investors tracking a mixed trend in commodities markets, and reacting to the European Central Bank's policy announcement.

On the Canadian economic front, a report from the Canadian Federation of Independent Business said CFIB's Business Barometer in Canada, a long-term index reflecting 12-month forward expectations for business performance in the country, rose slightly to 49 in January 2024 from 47 in December, marking the best reading in five months.

Data on average weekly earnings for the month of November, and a report on Canadian manufacturing sales in December are due at 8:30 AM ET.

CGI Inc (GIB.A.TO) said Thursday that it has renewed a contract with National Bank of Canada to deliver technology services. The company said it has signed another 10-year contract to support the Canadian bank's operations and client experience.

After four successive days of gains, the Canadian market ended slightly down on Wednesday. Investors digested the Bank of Canada's monetary policy announcement. The Canadian central bank held its key interest rate unchanged and expressed concerns about risks to the outlook for inflation.

The benchmark S&P/TSX Composite Index, which climbed to 21,161.22 in early trades, ended the session with a loss of 8.81 points or 0.04% at 21,025.78, slightly off the day's low.

Asian stocks closed on a positive note on Thursday amid the euphoria generated by China's surprise announcement of a 50-basis point cut in the reserve requirement for banks. The resultant liquidity infusion into the economy is seen supporting a fragile recovery.

European stocks are down in negative territory, weighed down by data showing a decline in Germany's business confidence. Data from the ifo Institute showed Germany's business confidence index dropped to 85.2 in January from 86.3 in December. The reading was forecast to climb to 86.7.

Meanwhile, the European Central Bank has left interest rates unchanged this month.

ECB President Christine Lagarde said earlier this month that the central bank is unlikely to think about cutting rates until the summer.

In commodities, West Texas Intermediate Crude oil futures are up $0.81 or 1.08% at $75.90 a barrel.

Gold futures are down $1.30 or 0.06% at $2,014.70 an ounce, while Silver futures are gaining $0.081 or 0.33% at $22.970 an ounce.