Bay Street Likely To Open On Negative Note

(RTTNews) - Canadian shares are likely to open on a negative note Tuesday morning, tracking lower commodity prices and weak European stocks.

With rate decisions from the Federal Reserve, the Bank of England and the European Central Bank due this week, the mood is likely to remain cautious once again.

The U.S. Federal Reserve is due to announce its policy decision on Wednesday, with economists expecting a 25 basis-point lift amid signs of cooling inflation. The accompanying statement and comments from Fed Chief Jerome Powell will be pored over for clarity on future rate hikes.

Investors are also pricing in a 50-bps rate hike from the Bank of England and European Central Bank this week.

On the Canadian economic front, GDP data for the month of November is due at 8:30 AM ET. According to preliminary estimates, the Canadian economy likely stagnated in November, after seeing an expansion of 0.1% in October.

The Canadian market ended notably lower on Monday, weighed down by losses in healthcare, energy and technology sectors. The benchmark S&P/TSX Composite Index ended with a loss of 142.37 points or 0.69% at 20,572.11, slightly off the day's low.

Asian stocks ended weak on Tuesday despite stronger purchasing managers' index data from China. As recession worries mount, investors awaited a slew of central bank decisions this week for direction.

European stocks are down firmly in negative territory, weighed down by weak retail sales data from Germany, slower pace of economic expansion in France, and the IMF's report that the British economy will shrink by 0.6% in 2023.

Investors also await the Federal Reserve's rate decision due Wednesday and the accompany statement for clues about the outlook for further rate hikes.

The Bank of England and the European Central Bank are also scheduled to announce their rate decisions this week.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.82 or 1.06% at $77.08 a barrel.

Gold futures are down $20.30 or 1.06% at $1,903.60 an ounce, while Silver futures are down $0.548 or 2.31% at $23.185 an ounce.