Bay Street Seen Opening On Mixed Note

(RTTNews) - Canadian shares are likely to open on a mixed note on Thursday with investors weighing the ECB's policy announcement, and tracking quarterly earnings updates.

The European Central Bank today raised its interest rate by 75 basis points, the third consecutive increase this year. The bank also announced that it was changing the terms and conditions of its targeted longer-term refinancing operations, or TLTROs — a tool that provides European banks with attractive borrowing conditions, designed to incentivise lending to the real economy.

In Canadian company news, TELUS Corp. (T.TO) and TELUS International (TIXT.TO) announced an agreement to acquire WillowTree, a full-service digital product provider focused on end user experiences. TELUS International will acquire WillowTree for a total enterprise value of $1.225 billion, inclusive of $210 million of assumed debt. The majority stakeholder Insignia Capital Group will sell its stake in WillowTree.

Cameco Corporation (CCO.TO) reported adjusted net earnings of $10 million for the quarter ended September 2022, as against adjusted net loss of $54 million in the year-ago quarter.

Atco Limited (ACO.X.TO) announced third quarter 2022 adjusted earnings of $87 million ($0.76 per share), compared to $69 million ( 0.60 per share) in the third quarter of 2021.

In economic news, a report from the Canadian Federation of Independent Business, Canada's CFIB's Business Barometer long-term optimism index, which is based on a 12-month outlook, fell to 51.4 in October of 2022 from a downwardly revised 52.4 in September, the lowest since April 2020.

The Canadian market ended on a firm note on Wednesday with investors cheering the Bank of Canada's interest rate decision. The benchmark S&P/TSX Composite Index, which rallied to 19,435.91, ended the session with a gain of 182.75 points or 0.96% at 19,279.76.

Citing elevated inflation, the Canadian central bank announced its sixth consecutive interest rate hike of the year, but at 50 basis points, the hike was less than economists' expectations of a 75 basis point increase.

Asian shares ended mixed on Thursday as Fed pivot hopes were offset by concerns over China's growth trajectory. China's Shanghai Composite index slipped 0.55 percent to 2,982.90 after data showed profits at China's industrial firms sank for a third consecutive month in September.

European stocks are notably lower, digesting the European Central Bank's policy announcement, and reacting to quarterly earnings updates.

In commodities trading, West Texas Intermediate Crude futures for December are up $0.80 or 0.91% at $88.71 a barrel.

Gold futures are down $3.40 or 0.2% at $1,665.80 an ounce, while Silver futures are lower by $0.101 or 0.52% at $19.385 an ounce.