Weak Bullion Prices, Interest Rate Concerns May Weigh On Canadian Shares At Open

(RTTNews) - Canadian shares may open lower on Thursday with weak bullion prices triggering a sell-off in the materials sector. Concerns about the outlook for interest rates may weigh as well.

After the Fed left its interest rate unchanged, the Bank of England has held its rates steady. Fed Chair Jerome Powell has signaled that a rate cut in March is unlikely

A report on manufacturing activity in Canada during the month of January, is due at 9:30 AM ET.

The S&P Global Canada Manufacturing PMI fell to 45.4 in December, from 47.7 in the previous month, pointing to the eighth consecutive contraction in the manufacturing sector.

Rogers Communications Inc. (RCI.A.TO) reported adjusted net income of C$630 million for the quarter ended December 31, 2023, compared to adjusted net income of $554 million in the corresponding quarter of the previous year. The company announced that its Board of Directors declared a quarterly dividend totaling 50 cents per share on each of its outstanding Class B Non-Voting shares ("Class B Shares") and Class A Voting shares.

Canada Goose Holdings Inc. (GOOS.TO) reported adjusted net income of $138.6 million or $1.37 per diluted share for the third-quarter, compared with an adjusted net income of $134.5 million or $1.27 per diluted share in the prior year period.

Real Matters Inc. (REAL.TO) reported first-quarter net loss of $3.6 million compared with a net loss of $4.6 million in the first quarter of the previous financial year.

The Canadian market ended notably lower on Wednesday after the Federal Reserve said it does not expect it will be appropriate to lower rates until it has gained greater confidence that inflation is moving sustainably toward 2%.

Due to widespread selling, all the sectoral indices ended in negative territory. Technology, healthcare, utilities, financials and energy stocks were among the major losers.

The benchmark S&P/TSX Composite Index ended down 205.99 points or 0.97% at 21,014.17.

Asian stocks ended mixed on Thursday as the U.S. Federal Reserve sought to temper texpectations on rate cuts and China reported mixed economic data.

A private survey showed activity in China's manufacturing sector continued to grow in January, thanks to stable growth in output, quicker logistics and the first rise in new export orders since June. Meanwhile, China's home sales dragged on in January, piling pressure on policymakers to step up efforts to halt the slump.

European stocks are turning in a mixed performance with investors digesting the Bank of England's monetary policy announcement, the Federal Reserve's policy move, and a slew of regional economic data.

The Bank of England held its interest rate steady at 5.25% as widely expected, but signaled that the next move will probably be down. The bank expects inflation to be back at 2% target by May.

In commodities, West Texas Intermediate Crude oil futures are up $0.34 or 0.45% at $76.19 a barrel.

Gold futures are down $19.30 or 0.93% at $2,048.10 an ounce, while Silver futures are lower by $0.459 or 1.98% at $22.710 an ounce.