Bay Street May Open Lower On Weak Commodity Prices

(RTTNews) - Weak crude oil and bullion prices are likely to weigh down the Canadian market Wednesday morning. The focus will be earnings updates from major banks, and key economic data including U.S. inflation readings, Canadian GDP and manufacturing activity data, due this week.

Royal Bank of Canada (RY.TO) reported net income of $3.6 billion for the quarter ended January 31, 2024, up $449 million or 14% from the prior year. Adjusted net income was $4.1 billion in the first quarter, down 5% from a year ago.

National Bank of Canada (NA.TO) reported first-quarter net income of $922 million, up 5% from $876 million in the first quarter of 2023. First-quarter diluted earnings per share stood at $2.59 compared to $2.47 in the first quarter of 2023.

George Weston Ltd (WN.TO) reported adjusted net earnings of $342 million for the fourth quarter of 2023, down $27 million or 7.3% from the year-ago quarter.

MDA Ltd. (MDA.TO) reported fourth-quarter earnings of C$13.5 million, up from C$8.8 million in the year-ago quarter. The company expects revenue of C$205 million to C$215 million in the first quarter of the current year.

On the economic front, Canadian current account data for the fourth quarter of 2023 is due at 8:30 AM ET.

A report an average weekly earnings in Canada for the month of December is also due at 8:30 AM ET.

The Canadian market ended slightly down on Tuesday after a somewhat lackluster session as investors refrained from making significant moves while awaiting some key economic data.

The benchmark S&P/TSX Composite Index ended down 5.41 points or 0.03% at 21,318.90 after staying in negative territory right through the day's session.

Asian stocks ended mixed on Wednesday as worries over rate cuts persisted, and investors awaited the release of U.S. and Eurozone inflation readings as well as Chinese PMI data this week for near-term direction.

European stocks are broadly lower with investors reacting to a slew of earnings updates, and awaiting crucial U.S. and Eurozone inflation readings, and Chinese PMI data.

In commodities, West Texas Intermediate Crude oil futures are down $0.81 or 1.01% at $78.06 a barrel.

Gold futures are down $6.80 or 0.33% at $2,037.30 an ounce, while Silver futures are lower by $0.182 or 0.81% at $22.350 an ounce.