Weak Oil Prices May Weigh On Canadian Market

(RTTNews) - The Canadian market is likely to open with a negative bias on Wednesday as energy stocks may see a sell-off due to falling oil prices. Materials shares are likely to ease on lower copper prices.

On the economic front, data on Canada's manufacturing sales and wholesale sales are due at 8:30 AM ET.

Canada's manufacturing sales rose by 0.4% from a month earlier to CAD 72.8 billion in September of 2023, following an upwardly revised 1% gain in August. Wholesale sales rose by 0.4% from a month earlier in September 2023, following a revised 1.8% increase in August.

After ending the previous session at a 2-month high, the Canadian market turned in a weak performance on Tuesday, despite data showing a drop in consumer price inflation. Losses in consumer, utilities and healthcare sectors weighed down the market.

The benchmark S&P/TSX Composite Index ended down 136.50 points or 0.67% at 20,109.97, near the day's low. The index touched a high of 20,259.47 in early trades.

Asian stocks slipped on Wednesday and the dollar steadied near its weakest level in almost three months after the FOMC (Federal Open Market Committee) meeting minutes largely reaffirmed the U.S. central bank's more cautious stance on interest rates.

U.S. Treasury yields edged up slightly as investors pared down bets on interest-rate cuts next year.

European stocks are broadly higher despite the latest FOMC minutes offering no indication of possible rate cuts.

Slightly easing geopolitical tensions following news that Hamas and Israel have agreed to a Qatar-mediated pause in fighting contribute a bit to the positive sentiment in the markets.

In commodities, West Texas Intermediate Crude oil futures are down $1.79 or 2.3% at $75.98 a barrel.

Gold futures are up $1.00 or 0.04% at $2,002.60 an ounce, while Silver futures are up $0.036 or 0.15% at $23.905 an ounce. Copper futures are lower by $3.0300 or 0.8% at $3.7825 per pound.