Bay Street Likely To Open With Positive Bias

(RTTNews) - Canadian shares are likely to open with a positive bias on Wednesday, tracking firm bullion prices.

Falling crude oil prices could trigger another round of selling in the energy space and limit market's upside.

The focus will be on the minutes from the Federal Reserve's December meeting to be released later in the day. The minutes to be out later in the day, and Friday's non-farm payroll report are expected to provide clues to the central bank's future actions.

The Canadian market ended modestly higher on Tuesday after paring a substantial portion of its early gains. Firm bullion prices and positive cues from European markets set up a bright start for Canadian shares. However, the market pared gains as investors turned cautious and cut down their positions amid concerns about a recession, and rising interest rates.

The benchmark S&P/TSX Composite Index ended with a gain of 58.85 points or 0.3% at 19,443.77. The index, which hit a high of 19,661.58 in early trades, dropped to a low of 19,380.34 a little past noon.

Asian stocks ended broadly higher on Wednesday and the dollar eased after reports emerged that the wave of COVID infections sweeping across China may already have peaked in some of the country's largest cities.

European stocks are up firmly in positive territory, even as U.K. markets underperform amid a decline in commodity-related stocks.

A measure of French inflation unexpectedly slowed in December and the euro area's final composite PMI saw a slight upward revision versus the preliminary estimate, helping underpin regional sentiment.

Elsewhere, German import price inflation weakened more than expected to the lowest in nearly one-and-a half years in November, Destatis said.

In commodities trading, West Texas Intermediate Crude oil futures are down $2.34 or 3.04% at $74.59 a barrel.

Gold futures are gaining $13.50 or 0.73% at $1,859.60 an ounce, while Silver futures are up $0.114 or 0.47% at $24.350 an ounce.