Bay Street Likely To See Positive Start

(RTTNews) - Canadian shares are likely to open higher Wednesday morning, tracking firm European stocks and higher crude oil prices.

With the crucial U.S. inflation data due later in the week, the mood is likely to remain cautious. Investors will be reacting to a slew of earnings announcements from Canadian companies.

Hydro One Limited (H.TO) reported second-quarter net income of $265 million, compared to $255 million in the same period of 2022. EPS was up $0.44 in the second quarter of this year, compared to $0.43 a year ago.

Metro Inc (MRU.TO) reported net earnings of $346.7 million for the third quarter of this financial year, up 26.1% from a year ago. Adjusted net earnings came in at $314.8 million in the third quarter, up 10.9% compared to the year-ago quarter.

CAE Inc. (CAE.TO) reported revenue of $1,054.4 million for the first quarter of fiscal 2024, compared with $933.3 million in the first quarter last year.

Nuvei Corporation (NVEI.TO) reported net income of $11.6 million for the quarter ended June 30, 2023, compared to net income of $35.1 million in the corresponding quarter of the previous year.

ATS Corporation (ATS.TO) said it posted a net income of $47.7 million in the first quarter of this fiscal, compared to $39.4 million a year ago.

On the economic front, data released by Statistics Canada a little while ago showed the value of building permits in Canada increased by 6.1% in June, after seeing a revised 12.6% surge a month earlier.

Canadian shares ended on a weak note on Tuesday despite regaining most of the lost ground. Worries about growth after weak Chinese trade data weighed on sentiment.

The benchmark S&P/TSX Composite Index ended lower by 30.06 points or 0.15% at $20,205.98.

Asian stocks ended on a mixed note on Wednesday amid worries about the U.S. banking system and fresh signs of weakening domestic demand in China. Investors also awaited U.S. consumer and wholesale inflation data due this week for clues on future rate hikes.

European stocks are up firmly in positive territory, led by gains in banking and mining sectors.

In commodities, West Texas Intermediate Crude oil futures are up $0.78 or 0.95% at $83.70 a barrel.

Gold futures are down $2.80 or 0.14% at $1,957.10 an ounce, while Silver futures are down $0.022 or 0.1% at $22.785 an ounce.