Bay Street Seen Opening Higher

(RTTNews) - Canadian shares are likely to open on positive note on Thursday, tracking European markets and on easing fears of a U.S. debt default, and encouraging data on Chinese factory activity.

The U.S. House of Representatives approved a debt ceiling and budget cuts package on Wednesday. The bill now heads to the Senate, with passage expected by the weekend.

BRP Inc. (DOO.TO) reported first-quarter net profit of C$154.5 million, or C$1.92 per share, compared with net profit of C$121 million, or C$1.46 per share, in last year's first quarter.

Laurentian Bank of Canada (LB.TO) reported net income of $49.3 million and diluted earnings per share of $1.11 for the second quarter of 2023, compared with $59.5 million and $1.34 for the second quarter of 2022.

On the economic front, data on Canadian manufacturing activity in the month of May is due at 9:30 AM ET. The S&P Global Manufacturing PMI rose to 50.2 in March, after posting a near three-year low of 48.6 in February.

The Canadian market ended notably lower on Wednesday, extending losses from the previous session, as worries about growth and prospects of further rate hikes continued to weigh on sentiment.

The benchmark S&P/TSX Composite Index ended with a loss of 167.46 points or 0.85% at 19,572.24, around 50 points off the day's low of 19,522.58.

Asian stocks ended broadly higher on Thursday as fears of a U.S. debt default eased and a private survey showed Chinese factory activity unexpectedly swung to growth in May.

European stocks are up in positive territory with investors cheering signs of progress on the U.S. debt ceiling deal, solid manufacturing data from China, data showing a sharp decline in eurozone inflation, and dovish comments from Fed officials hinting at a pause in interest-rate hikes.

In commodities, West Texas Intermediate Crude oil futures are down $0.43 or 0.65% at $67.66 a barrel.

Gold futures are up $2.10 or 0.11% at $1,984.20 an ounce, while Silver futures are up marginally at $23.600 an ounce.