Bay Street Seen Opening Weak; BoC Rate Decision In Focus

RTTNews | 328 days ago

(RTTNews) - Lower stock futures and commodity prices point to a weak start for the Canadian market on Wednesday. The focus will be on the Canadian central bank's interest rate decision due after the opening bell.

The Bank of Canada is scheduled to announce its monetary policy at 9:45 AM ET. The central bank is widely expected to reduce interest rates by 50 basis points.

In earnings news, Whitecap Resources (WCP.TO) reported third-quarter net profit of $274.2 million, or $0.46 per share, compared with $152.7 million, or $0.25 per share in the year-ago quarter.

The Canadian market recovered from an early setback and ended flat on Tuesday. The mood was cautious with investors awaiting the Canadian central bank's interest rate decision on Wednesday.

The benchmark S&P/TSX Composite Index ended down 6.63 points or 0.03% at 24,716.70. The index, which dropped to 24,565.21 in early trades, briefly moved into positive territory, rising to 24,724.53 in the closing minutes.

Asian stocks ended mixed on Wednesday and the U.S. dollar index surpassed 104 mark, tracking elevated U.S. treasury yields amid easing expectations of aggressive Federal Reserve rate cuts and fears the U.S. may be heading toward fiscal collapse.

Gold reached a new record high while oil prices fell after industry data showed U.S. crude inventories swelled more than expected.

Chinese shares eked out modest gains after reports emerged that the government may deploy as much as 2 trillion yuan (US$280 billion) to establish a stock market stabilization fund.

European stocks are down in negative territory with investors digesting and awaiting the upcoming U.K. autumn budget. The dollar is on the rise again and U.S. Treasury yields hover near three-month highs as traders ponder the prospect of a Donald Trump presidency.

It is feared that Trump policies including tariffs and restrictions on undocumented immigration could increase inflation and keep interest rates relatively high for a longer-than-anticipated period.

In commodities, West Texas Intermediate Crude oil futures are down $1.19 or 1.66% at $70.55 a barrel.

Gold futures are down $1.90 or 0.07% at $2,757.90 an ounce, while Silver futures are lower by $0.371 or 1.06% at $34.670 an ounce.

Swiss Market Ends On Weak Note

The Switzerland market closed notably lower on Tuesday, in line with most of the major markets across Europe, as the mood remained cautious ahead of monetary policy announcements from the Federal Reserve and the Bank of England, due on Wednesday and Thursday, respectively.

RTTNews | 3h 1min ago

European Markets Close On Weak Note Ahead Of Fed, BoE Policy Decisions

European markets closed notably lower on Tuesday as investors, digesting a slew of economic data from the region, remained reluctant to pick up stocks ahead of Federal Reserve's interest rate decision due on Wednesday.

RTTNews | 3h 16min ago

U.S. Business Inventories Rise 0.2% In July, In Line With Estimates

The Commerce Department released a report on Tuesday showing business inventories in the U.S. increased in line with expectations in the month of July. The report said business inventories rose by 0.2 percent in July, matching the increase seen June as well as economist estimates.

RTTNews | 4h 17min ago

U.S. Homebuilder Confidence Holds Steady In September

Homebuilder confidence in the U.S. held steady in the month of September, according to a report released by the National Association of Home Builders on Tuesday. The report said the NAHB/Wells Fargo Housing Market Index came in at 32 in September, unchanged from August. Economists had expected the index to inch up to 33.

RTTNews | 4h 44min ago

U.S. Industrial Production Unexpectedly Inches Slightly Higher In August

Industrial production in the U.S. unexpectedly edged slightly higher in the month of August, according to a report released by the Federal Reserve on Tuesday. The Fed said industrial production crept up by 0.1 percent in August after falling by a downwardly revised 0.4 percent in July. Economists had expected industrial production to slip by 0.1 percent.

RTTNews | 5h 2min ago

U.S. Import Prices Unexpectedly Increase In August

A report released by the Labor Department on Tuesday showed import prices in the U.S. unexpectedly increased in the month of August. The Labor Department said import prices rose by 0.3 percent in August after inching up by a downwardly revised 0.2 percent in July. Economists had expected import prices to edge down by 0.1 percent.

RTTNews | 5h 18min ago

Canadian Market Drifts Lower In Cautious Trade

The Canadian market is down in negative territory Tuesday morning, as data showing an increase in the nation's consumer price inflation dimmed the extent of rate cuts this year although the Canadian central bank is widely expected to lower interest rate by 25 basis points on Wednesday.

RTTNews | 5h 44min ago

U.S. Retail Sales Climb 0.6% In August, Much More Than Expected

The Commerce Department released a report on Tuesday showing retail sales in the U.S. rose by much more than expected in the month of August. The report said retail sales climbed by 0.6 percent in August, matching an upwardly revised increase in July. Economists had expected retail sales to inch up by 0.2 percent compared to the 0.5 percent growth originally reported for the previous month.

RTTNews | 6h 45min ago

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