Bay Street Likely To Open On Cautious Note; BoC Rate Decision In Focus

(RTTNews) - The Canadian market is likely to open on a cautious note on Wednesday, with investors focusing on the Bank of Canada's policy announcement.

A mixed trend in the commodities market, subdued European stocks, and weak Chinese trade data are likely to weigh.

The BoC, which is scheduled to announce it decision at 9:30 AM ET, is widely expected to hold interest rate unchanged at 4.5%.

Canada's trade data for the month of April, and a report on Canadian labor productivity in the first quarter, are due at 8:30 AM ET.

The Canadian market closed on a firm note on Tuesday, aided by strong gains in technology, energy and financials shares.

The benchmark S&P/TSX Composite Index ended higher by 123.98 points or 0.62% at 20,055.60.

Asian markets turned in a mixed performance on Wednesday as Chinese trade data disappointed and investors awaited cues from key central bank meetings due next week.

Official data showed China's trade surplus dropped to US$ 65.81 billion in May 2023 from US$ 78.40 billion in the same period a year earlier. Exports shrank by 7.5% y-o-y to a three-month low of US$ 283.5 billion, the first decline in three months and the steepest drop since January, while imports decreased by 4.5%, amid weakening domestic demand.

European stocks are subdued today, weighed down by weak Chinese trade data, and amid caution ahead of key central bank meetings next week.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.51 or 0.7% at $72.25 a barrel.

Gold futures are down slightly at $1,981.00 an ounce, while Silver futures are gaining $0.055 or 0.23% at $23.725 an ounce.