Bay Street Likely To Open With Positive Bias; U.S. Inflation Data In Focus

(RTTNews) - Higher U.S. and Canadian index futures and modestly higher commodity prices point to a positive start for the Canadian market on Thursday.

Data on U.S. consumer price inflation for the month of September is likely to significantly impact price movements in the market.

U.S. inflation data could offer more clarity on whether the Federal Reserve needs restrictive monetary policy to lower inflation that is at multi-decade highs.

Concerns about inflation continue to rise after overnight data showed U.S. producer price inflation rose more than expected in September.

Despite risks of a recession, the U.S. central bank is likely to raise policy rates by 75 bps in November.

The Canadian market recovered gradually after early weakness on Wednesday, and eventually closed marginally down. The Fed minutes, released this afternoon, showed the officials expect higher rates to stay in place until prices come down.

The benchmark S&P/TSX Composite Index ended down 10.40 points or 0.06% at 18,206.28, after scaling a low of 18,111.57 and a high of 18,273.64 intraday.

Asian shares ended lower on Thursday as investors awaited U.S. consumer price inflation data later in the day that could offer more clarity on whether the Federal Reserve needs restrictive monetary policy to lower inflation that is at multi-decade highs.

European stocks are slightly higher in cautious trade amid concerns over a turbulent U.K. bond market and news of more Russian missile strikes on Ukrainian towns.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.28 or 0.32% at $87.55 a barrel.

Gold futures are gaining $4.80 or 0.29% at $1,682.30 an ounce, while Silver futures are up $0.222 or 1.17% at $19.160 an ounce.