Bay Street Likely To Open On Mixed Note

(RTTNews) - Canadian shares are likely to open on a mixed note on Thursday with investors reacting to earnings announcements from major banks, and tracking global cues and commodity prices.

Worries over the impasse in U.S. debt ceiling deal negotiations may continue to weigh on the market.

Fitch Ratings along with Moody's and S&P placed the United States "AAA" credit on "rating watch negative," signaling downside risks to U.S. creditworthiness.

Royal Bank of Canada (RY.TO) today reported net income of $3.6 billion for the quarter ended April 30, 2023 , down $604 million or 14% from the prior year.

Toronto-Dominion Bank (TD.TO) reported adjusted net income of $3,752 million for the second quarter of the current financial year, compared with adjusted net income of $3,714 million in the year-ago quarter.

Canadian Imperial Bank of Commerce (CM.TO) reported adjusted net income of $1,627 million for the second quarter of this fiscal, compared with adjusted net income of $1,652 million a year ago.

Loblaw Companies Ltd. (L.TO) has announced plans to purchase five Class 8 T680 hydrogen fuel cell electric vehicles or FCEV from Kenworth. The vehicles add to the firm's growing zero-emission fleet as it works to achieve net-zero carbon emissions by 2040.

On the economic front, a report from the Canadian Federation of Independent Business showed Canada's CFIB Business Barometer long-term optimism index increased to 56.4 in May, the highest since June last year from 55.7 in April.

Preiliminary data on Canadian manufacturing sales for the month of April is due at 8:30 AM ET.

The Canadian market ended on a weak note on Wednesday, losing more than 1% for a second straight day, as worries about growth, and concerns about U.S. lawmakers' ability to reach an agreement on increasing the U.S. debt ceiling continued to weigh.

The benchmark S&P/TSX Composite Index ended down 218.32 points or 1.08% at 19,927.69, a two-month closing low.

Asian stocks hit two-month lows on Thursday and the dollar rose on safe-haven demand as the impasse in negotiations to raise the U.S. debt ceiling and warnings of a possible U.S. credit rating downgrade spooked investors.

Traders remained wary of a possible and catastrophic default with U.S. Treasury Secretary Janet Yellen maintaining early June as a debt ceiling default deadline.

European stocks remain in negative territory despite coming off early lows. Doubts about China's economic recovery and lingering uncertainty surrounding the possibility of a U.S. debt default weigh on sentiment.

In commodities, West Texas Intermediate crude oil futures are down $1.49 or 2% at $72.85 a barrel.

Gold futures are down $3.40 or 0.17% at $1,961.20 an ounce, while Silver futures are lower by $0.145 or 0.62% at $23.095 an ounce.