Bay Street Likely To Open Higher; Fed Policy In Focus

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

The focus will be on the Federal Reserve's monetary policy announcement, due later in the day. Data from the Labor Department on Wednesday showed a moderation in U.S. consumer price inflation in the month of May, adding to optimism about the Fed pausing its recent interest rate increases.

On the Canadian economic front, data on new motor vehicles sales for the month of April is due at 8:30 AM ET.

The Canadian market ended on a firm note on Tuesday despite paring a substantial portion of its early gains.

Data showing just a moderate rise in U.S. consumer prices in the month of May raised hopes the Federal Reserve will pause interest rate hikes. Additionally, higher crude oil prices pushed up energy stocks, contributing to market's positive close.

The benchmark S&P/TSX Composite Index, which climbed to 20,099.24 in early trades, ended with a gain of 69.09 points or 0.35% at 19,990.40.

Asian stocks ended on a mixed note on Wednesday after overnight data showed U.S. consumer price inflation barely rose in May, reinforcing expectations the Fed would skip a rate hike later in the day.

European stocks are up firmly in positive territory as Fed pause hopes and encouraging economic data from Germany and the U.K. help underpin sentiment.

Data showing a bigger than expected industrial production growth in the Euro area contribute as well to the positive mood in European markets.

In commodities, West Texas Intermediate Crude oil futures are up $0.87 or 1.25% at $70.29 a barrel.

Gold futures are up slightly at $1,958.80 an ounce, while Silver futures are gaining $0.068 or 0.29% at $23.890 an ounce.