Bay Street May Open With Slightly Negative Bias

(RTTNews) - Canadian shares are likely to open with a slightly negative bias Tuesday morning, weighed down by weakness in European markets and rising geopolitical tensions.

Also, with the crucial U.S. inflation data due on Wednesday, traders may be reluctant to make significant moves. Higher crude oil prices might trigger some buying in the energy sector and limit market's downside.

In earnings news, Hydro One Limited (H.TO) reported net income of $255 million for the quarter ended June 30, 2022, compared with net income of $238 million in the corresponding quarter last year.

Bausch Health Companies Inc. (BHC.TO) reported total revenues of $1.967 billion for the second quarter of 2022, as compared to $2.1 billion in the second quarter of 2021, a decrease of $133 million, or 6%.

The Canadian market ended modestly higher on Monday after staying in a tight range. The benchmark S&P/TSX Composite Index ended with a gain of 49.04 points or 0.25% at 19,669.17 after scaling a low of 19,661.75 and a high of 19,768.01 intraday.

Asian stocks ended slightly higher on Tuesday, though Japanese markets fell sharply on disappointing earnings news. Regional gains were capped ahead of key U.S. inflation data due on Wednesday.

European stocks are down in negative territory amid rising geopolitical tensions and caution ahead of key U.S. inflation print for clues on the Fed's next move.

The Russian bombardment of a Ukrainian power plant has sparked fears of a radioactive fallout in Europe. Elsewhere, Taiwan's foreign minister said earlier today that China has used the drills in its military playbook to prepare for the invasion of Taiwan.

In commodities trading, West Texas Intermediate Crude oil futures are up $1.20 or 1.32% at $91.96 a barrel.

Gold futures are gaining $1.50 or 0.1% at $1,806.70 an ounce, while Silver futures are up $0.011 or 0.05% at $20.625 an ounce.