Bay Street Likely To Open On Positive Note

(RTTNews) - The Bank of Canada's interest rate decision, and U.S. consumer price inflation data are in focus on Bay Street Wednesday morning. The market looks set to open higher thanks to firm commodity prices and European stocks.

Data released by the Labor Department showed consumer prices in the U.S. increased by slightly less than expected in the month of February, edging up by 0.2%, after climbing by 0.5% in January. Economists had expected consumer prices to rise by 0.3%.

The report also said the annual rate of consumer price growth slowed to 2.8% in February from 3% in January. Economists had expected the pace of price growth to edge down to 2.9%.

The Canadian central bank is widely expected to lower interest rate by 25 basis points. The central bank's accompanying statement is in focus for clues about future moves with regard to interest rates.

A Bloomberg survey of 12 economists estimate the central bank will trim the rate a full percentage points from the current 3% by October.

The Canadian market ended weak on Tuesday and the benchmark S&P/TSX Composite Index dropped to a fresh 4-month low, amid concerns about trade tensions between Canada and the U.S.

After speaking about hiking tariffs on Canadian steel and aluminum to 50%, and raising duties on auto parts, the Trump administration said the hike will not become effective tomorrow, as Canada agreed to suspend a 25% tariff on electricity exports.

Investors looked ahead to the Bank of Canada's monetary policy announcement on Wednesday.

The Canadian central bank is widely expected to lower interest rate by 25 basis points.

The S&P/TSX Composite Index closed down 132.51 points or 0.54% at 24,248.20, after scaling a low of 24,155.63 and a high of 24,493.46 intraday.

Asian stocks ended mostly lower on Wednesday despite U.S. President Donald Trump downplaying fears of a recession and Ukraine endorsing a U.S. proposal for a 30-day ceasefire with Russia.

European stocks are broadly higher today after the European Union announced retaliatory tariffs on U.S. imports of steel and aluminum. Positive reaction to news about Ukraine agreeing to an immediate 30-day ceasefire negotiated by the U.S. if Russia accepts the plan.

In commodities, West Texas Intermediate Crude oil futures are up $0.32 or 0.48% at $66.57 a barrel.

Gold futures are gaining $4.50 or 0.15% at $2,925.40 an ounce, while Silver futures are up $0.298 or 0.9% at $33.445 an ounce.