Bay Street Likely To See Flat Start

(RTTNews) - Canadian shares are likely to open flat on Wednesday, tracking mixed cues from European and commodities markets.

The mood is likely to remain cautious amid concerns over the health of Chinese economy, and prospects of further rate hikes by the Federal Reserve.

Data from Canada Mortgage and Housing Corporation showed housing starts in Canada decreased to 255,000 units in July from 283,500 unites June.

Data from Statistics Canada showed wholesale sales in Canada decreased to -2.8% in June from a revised 2.9% increase in May.

In company news, Bank of Nova Scotia (BNS.TO) launched its new tax free First Home Savings Account or FHSA to encourage Canadians to own their first home. This facility allows first-time homebuyers to grow and withdraw money from the account tax-free, as well as contribution up to $8,000 each year, with a maximum lifetime contribution of $40,000.

The Canadian market ended sharply lower on Tuesday as stocks across the board fell on sustained selling pressure after hot inflation data, and on concerns about interest rate outlook after U.S. retail sales increased more than expected in the month of July.

Rising concerns over the health of the Chinese economy hurt as well.

The benchmark S&P/TSX Composite Index ended with a loss of 390.75 points or 1.93% at 19,899.79, near the day's low of 19,888.28.

Asian stocks fell on Wednesday, with uncertainty over the Federal Reserve's future rate hike path, more disappointing Chinese economic data and fresh concerns over the health of the U.S. banking sector keeping investors nervous.

European stocks are turning in a mixed performance with investors digesting the data on eurozone industrial production and GDP.

Euro area industrial production unexpectedly rose by 0.5% month-over-month in June 2023, after a revised flat reading in the prior month, the Eurostat reported.

Separate data revealed the Eurozone economy expanded by 0.3% on a quarterly basis in the three months to June of 2023, matching the consensus estimates.

In commodities, West Texas Intermediate Crude oil futures are up $0.20 or 0.25% at $81.19 a barrel.

Gold futures are down slightly at $1,934.60 an ounce, while Silver futures are up $0.69 or 0.3% at $22.725 an ounce.