Bay Street Seen Opening On Mixed Note

(RTTNews) - It's likely to be a mixed open for Canadian shares on Tuesday with investors digesting U.S. consumer price inflation data, and reacting to crude oil and bullion prices.

Data from Statistics Canada showed manufacturing sales in Canada increased to 4.1% in January from -1.5% in December of 2022.

Data from the Labor Department showed U.S. consumer prices rose 0.4% in February, following a 0.5% increase in the previous month. Core prices climbed 0.5% in February, from 0.4% in January, the data showed.

The annual inflation rate hit 6% in February, slowing for an eighth straight month.

The market is likely to see some bargain hunting amid hopes the drop in U.S. consumer price inflation, and the setback in the banking sector following the collapse of Silicon Valley Bank might prompt the Fed to consider a pause in interest rate hikes.

However, falling crude oil prices and weak bullion futures are likely to limit upside.

The Canadian market ended notably lower on Monday, weighed down by losses in energy, financials and consumer discretionary sectors, amid rising concerns over the potential fallout from the collapse of Silicon Valley Bank.

The benchmark S&P/TSX Composite Index, which plunged nearly 350 points to 19,427.53 in early trades, ended the session with a loss of 186.02 points or 0.94% at 19,588.90.

Asian stocks tumbled on Tuesday as worries persisted about the fallout from the Silicon Valley Bank (SVB) collapse and investors awaited key U.S. inflation data later in the day for clues on the path forward for U.S. monetary tightening.

European stocks have moved higher after a volatile start, with traders indulging in bargain hunting amid expectations for a pause in U.S. rate hikes following the collapse of Silicon Valley Bank and Signature Bank.

In commodities trading, West Texas Intermediate Crude oil futures are down $1.33 or 1.79 percent at $73.46 a barrel.

Gold futures are down $5.20 or about 0.27 percent at $1,911.30 an ounce, while Silver futures are lower by $0.228 or 1.04% at $21.695 an ounce.