Bay Street Seen Opening Lower

(RTTNews) - Canadian shares are likely to open on a negative note on Wednesday, tracking weak European stocks and lower commodity prices. The focus will be on the Bank of Canada's interest rate decision, due at 10 AM ET.

The central bank is widely expected to hold its policy rate unchanged at 5%, and keep the rate steady until the end of the year. A section of economists expect the bank to reduce key interest rate to 3.5% in the fourth quarter of the next financial year.

Canada's trade data for the month of July is due at 8:30 AM ET. A report on Canadian second-quarter labor productivity is also due at 8:30 AM ET.

In company news, Enbridge Inc (ENB.TO) has struck a deal with Dominion Energy to buy three natural gas utilities from it for a total consideration of $14 billion. The net value of the deal is $9.4 billion but will also involve the assumption of the utilities' debt.

The Canadian market ended notably lower on Tuesday, weighed down by concerns about global economic slowdown after data showed Chinese services activity expanded at the slowest pace in eight months in August, and business activity in the euro zone weakened further in August as the economic downturn extended from manufacturing to the services sector.

The benchmark S&P/TSX Composite Index ended down by 131.60 points or 0.64% at 20,413.76, near the day's low.

Asian markets ended broadly lower on Wednesday, amidst concerns about growth in China as well the broader world economy. The rise in crude oil prices also weighed on sentiment.

European stocks are firmly down in negative territory in early afternoon trades on Wednesday, extending recent losses.

Lingering worries about slowing growth and the likely surge in inflation due to rising oil prices continue to weigh on sentiment. Shares from financials and mining sectors are among the prominent losers.

In commodities, West Texas Intermediate Crude oil futures are down $0.44 or 0.51% at $86.25 a barrel.

Gold futures are down $1.60 or 0.1% at $1,951.00 an ounce, while Silver futures are lower by $0.098 or 0.41% at $23.775 an ounce.