Bay Street Seen Opening Higher

(RTTNews) - Higher commodity prices and positive cues from Asian and European markets point to a higher start for Canadian shares on Tuesday.

In company news, Bank of Nova Scotia (BNS.TO) reported fourth-quarter net income of C$1.95 billion or C$1.63 per share, down from C$2.41 billion or C$1.97 per share in the prior-year quarter.

Royal Bank of Canada (RY.TO) announced Monday that it has signed an agreement to acquire 100% of the common shares of HSBC Bank Canada, a premier Canadian personal and commercial bank, for an all-cash purchase price of C$13.5 billion.

On the economic front, data on Canadian GDP growth for the third quarter is due at 8:30 AM ET. Canada's GDP expanded by 0.8% on the quarter during the April-June quarter, equaling the growth rate from the previous period to mark four consecutive quarters of growth.

The Canadian market closed notably lower on Monday, weighed down by losses in materials, energy and financials sections. The mood was quite bearish in the market due to concerns about the growing unrest in China amid widespread protests against the government's zero-Covid policy.

The benchmark S&P/TSX Composite Index ended with a loss of 163.28 points or 0.8% at 20,220.49. The index dropped to a low of 20,178.80 in the session.

Asian stocks ended higher on Tuesday, with mainland China and Hong Kong markets leading the surge, as China reported a slight dip in new COVID-19 infections and China reopening rumors swirled ahead of a press conference later in the day on COVID prevention and control measures.

China's Shanghai Composite index jumped 2.31%, while Hong Kong's Hang Seng index surged 5.24%.

After a positive start and a subsequent drop to lower levels, European stocks are up again in early afternoon trades on Tuesday amid hopes the Chinese government will relax its zero-Covid policy sometime soon.

In commodities trading, West Texas Intermediate Crude oil futures are up $1.60 or 2.07% at $78.84 a barrel.

Gold futures are gaining $13.20 or 0.75% at $1,753.50 an ounce, while Silver futures are up $0.335 or 1.6% at $21.250 an ounce.