Firm Commodity Prices Pointing To A Positive Start On Bay Street

(RTTNews) - Canadian shares are likely to open higher Wednesday morning, tracking firm crude oil and bullion prices.

The focus will be on the Federal Reserve's policy announcement, due at 2 PM ET. The Fed is widely expected to hike interest rates by 75 basis points. Some analysts expect the rate to be hiked by as much as 1%.

CME Group's FedWatch Tool is currently indicating an 84% chance of a 75 basis points rate hike and a 16% chance of a 100 basis point rate hike.

Worries about geopolitical tensions might weigh a bit and limit market's upside. Russian President Vladimir Putin announced a partial military mobilization in the country, bringing geopolitical tensions to the forefront.

In a televised address, Putin said the partial mobilization of its 2 million-strong military reserves was to defend Russian territories, claiming the West wants to destroy Russia and did not want peace in Ukraine.

In Canadian company news, Teck Resources Limited (TECK_B.TO) said that there has been a structural failure of the plant feed conveyor belt at its Elkview steelmaking coal operation in the Elk Valley of British Columbia. It is expected that production at Elkview Operations will be interrupted for 1-2 months as repairs are implemented.

Teck expects the impact on 2022 steelmaking coal production will be in the range of 1.5 million tonnes, assuming a two-month suspension of plant operations.

Canadian stocks fell on Tuesday amid rising concerns about slowing growth and aggressive rate hikes by central banks. The benchmark S&P/TSX Composite Index ended the session with a loss of 193.69 points or 0.99% at 19,368.69.

Asian stocks closed lower on Wednesday after Russian President Vladimir Putin announced a partial military mobilization in the country, bringing geopolitical tensions to the forefront.

Worries about aggressive Federal Reserve policy tightening also kept investors on their toes ahead of the U.S. Federal Reserve's much-anticipated interest-rate decision later in the day.

The Asian Development Bank cut its economic growth forecast for China and also lowered its outlook for developing Asia, citing the Ukraine conflict.

European stocks are turning in a mixed performance in cautious trade with investors awaiting the Fed's rate decision and monitoring increased political tensions with Russia.

In commodities trading, West Texas Intermediate Crude oil futures are up $1.63 or 1.93% at $86.08 a barrel.

Gold futures are gaining $12.50 or 0.75% at $1,683.50 an ounce, while Silver futures are up $0.382 or 1.99% at $19.565 an ounce.