Bay Street Seen Opening On Weak Note

(RTTNews) - The Canadian market is headed for a weak start on Thursday, tracking lower crude oil prices and weak Asian and European stocks amid concerns about growth and the ongoing conflict in the Middle East.

The European Central Bank has ended its run of interest rate hikes, despite new upside risks to inflation from oil markets amid the Israel-Hamas war.

The ECB's policy announcement, and crucial U.S. economic data are also likely to make a significant impact on price movements in the Canadian market.

In Canadian earnings news, FirstService Corporation (FSV.TO) reported consolidated revenues of $1.12 billion for the third-quarter, up 16% compared to the year-ago quarter.

Canadian Utilities Limited (CU.TO) reported third quarter 2023 adjusted earnings of $87 million ($0.32 per share), compared to $120 million ($0.45 per share) in the third quarter of 2022.

ATCO Ltd. (ATCO.TO) reported third quarter 2023 adjusted earnings of $81 million ($0.71 per share), compared to $87 million ($0.76 per share) in the year-ago quarter.

Precision Drilling Corporation (PD.TO) reported third-quarter net earnings of $20 million or $1.45 per share compared to $31 million or $2.26 per share in the corresponding quarter last year.

On the economic front, a report from the Canadian Federation of Independent Business showed Canada's CFIB Business Barometer long-term optimism index fell for the second straight month to 47.2 in October 2023 from 48.7 in the prior month. It was the lowest reading since April 2020.

Data on average weekly earnings for the month of August, and preliminary reading for manufacturing sales in the month of September, are due at 8:30 AM ET.

Canadian stocks ended weak on Wednesday, extending losses to a sixth straight day, and the longest losing streak in four months, amid concerns about interest rates and the outlook for economic growth.

Worries about the conflict in the Middle East, and higher bond yields hurt as well.

The benchmark S&P/TSX Composite Index ended down 38.64 points or 0.2% at 18,947.85, the lowest close in 12 months.

The Bank of Canada decided to leave interest rate unchanged at 5%, but warned that it is prepared to raise policy rate further if needed as inflationary risks have increased.

Asian stocks declined on Thursday, tracking steep losses on Wall Street overnight on surging bond yields and mixed earnings news.

Investors also awaited cues from U.S. third-quarter gross domestic product data due later in the day before a Federal Reserve meeting next week.

European stocks are down in negative territory, weighed down by downbeat earnings from the likes of WPP, Unilever, Mercedes Benz and BNP Paribas added to concerns around elevated bond yields and the Middle East tensions.

In commodities, West Texas Intermediate Crude oil futures are down $2.47 or 2.89% at $82.92 a barrel.

Gold futures are down marginally at $1,994.70 an ounce, while Silver futures are gaining $0.068 or 0.3% at $23.075 an ounce.