Bay Street Likely To Open Higher; Inflation Data In Focus

(RTTNews) - Although global cues point to a positive start, Canadian inflation data for the month of July, due before the opening bell, will set the tone for stocks on Bay Street on Tuesday.

Higher crude oil prices might trigger some buying in the energy space and support market's upside.

Data on Canadian inflation for the month of July is due at 8:30 AM ET. Housing starts data for July is due at 8:15 AM ET.

Canada's annual inflation rate rose to 8.1% in June of 2022, the highest since January 1983 but below market expectations of 8.4%. On a monthly basis, consumer prices rose 0.7%, below expectations of a 0.9% increase and slowing from the 1.4% jump in May.

Core consumer prices in Canada increased 6.2% in June of 2022 (the highest rate since at least 1984) over the same month in the previous year.

In earnings news, Seabridge Gold Inc. (SEA.TO) posted a net profit of $19.1 million ($0.24 per share) for the quarter ended June 30, 2022, compared to a net profit of $14.5 million ($0.19 per share) for the corresponding period in 2021.

The Canadian market ended flat on Monday, recovering gradually after a sharp early setback. Healthcare and consumer discretionary stocks posted strong gains, aiding market's recovery.

The benchmark S&P/TSX Composite Index, which tumbled to 20,023.14 in early trades, losing nearly 160 points in the process, settled at 20,180.60, up less than a point from its previous close.

Asian stocks closed broadly higher on Tuesday, even as the upside remained capped by growing concerns of a global recession. Chinese shares finished marginally higher amid expectations that policymakers would roll out more stimulus measures to boost sagging economic growth.

European stocks are higher as disappointing data from the United States led to speculation of the Federal Reserve slowing down on rate hikes. Underlying sentiment remained supported amid expectations that Chinese policymakers would roll out more stimulus measures to boost sagging economic growth.

In commodities trading, West Texas Intermediate Crude oil futures for September are up $0.86 or 0.96% at $90.27 a barrel.

Gold futures are down $7.40 or 0.41% at $1,790.70 an ounce, while Silver futures are down $0.207 or 1.02% at $20.065 an ounce.