Canadian Inflation Data, Fed Minutes In Focus

(RTTNews) - Futures and European stocks point to a muted start on Bay Street Tuesday morning, but it will be the inflation data, which is due before the opening bell, that will determine the mood. Needless to say, the minutes from the Federal Reserve's latest policy meeting will be in focus too.

The annual inflation rate in Canada declined to 3.8% (y-o-y) in September from 4% in the previous month. The Consumer Price Index decreased 0.1% in September over the previous month.

Core consumer prices in Canada increased 2.8% in September over the same month in the previous year. Core inflation rate decreased to -0.1% (MoM) in September from 0.1% in August.

A report on new housing prices in Canada is also due at 8:30 AM ET. New home prices in Canada dropped by 0.2% month-over-month in September, after a 0.1% rise in August.

The dollar languished near its lowest in two-and-a-half months as investors look forward to minutes from Federal Reserve's latest meeting for more clarity on the rate outlook.

In earnings news, George Weston Limited (WN.TO) reported adjusted net earnings of $466 million for the third-quarter of the current financial year, an increase of $13 million, or 2.9%, compared to a year ago.

The Canadian market ended modestly higher on Monday after a somewhat lackluster session, as the mood remained cautious amid a lack of fresth triggers.

The benchmark S&P/TSX Composite Index ended up 70.70 points or 0.35% at 20,246.47, a two-month closing high.

Asian stocks ended mixed on Tuesday while gold gained on a weaker dollar and softening bond yields amid expectations that the Federal Reserve may be done hiking interest rates.

European stocks are mostly lower in cautious trade ahead of speeches from a number of European Central Bank officials, the release of the Federal Reserve's minutes from its November meeting and Nvidia's earnings.

In commodities, West Texas Intermediate Crude oil futures are down $0.16 or 0.21% at $77.44 a barrel.

Gold futures are gaining $9.80 or 0.49% at $1,990.10 an ounce, while Silver futures are up marginally at $23.620 an ounce.