Bay Street Likely To Open On Firm Note

(RTTNews) - Canadian shares look headed for a firm start Thursday morning, tracking positive European markets and higher commodity prices.

The market is also likely to gain amid easing fears about a U.S. recession this year. Investors will also be reacting a slew of earnings updates.

The Fed raised its interest rate by 25 basis points as widely expected. The decision to increase rates came as the Fed noted inflation remains elevated, while U.S. economic activity has been expanding at a moderate pace and job gains have been robust in recent months.

In his post-meeting press conference Fed Chair Jerome Powell said it is possible the central bank could raise rates again in September or hold steady, noting the central bank plans to take a meeting by meeting approach.

Cenovus Energy Inc. (CVE.TO) reported second-quarter net earnings of $866 million, compared with $636 million in the previous quarter.

Canadian Utilities Ltd. (CU.TO) reported adjusted net earnings of $100 million, or $0.37 per share for the second quarter, compared to $136 million, or $0.51 per share, in the second quarter of the previous year.

FirstService Corporation (FSV.TO) reported consolidated revenues of $1.12 billion for the second quarter, up 20% compared to consolidated revenues in the year-ago quarter.

ATCO Ltd. (ACO.TO) posted adjusted net earnings of $87 million ( $0.77 per share) in the second quarter, $5 million ($0.04 per share) lower compared to $92 million ($0.81 per share) in the second quarter of 2022.

On the economic front, a report from the Canadian Federation of Independent Business said Canada's CFIB Business Barometer long-term optimism index edged higher by 0.2 points from the previous month to 54.2 in July.

The Canadian market ended slightly up on Wednesday after a cautious session. Stocks turned in a mixed performance with investors reacting to quarterly earnings news, and the Federal Reserve's monetary policy statement.

The benchmark S&P/TSX Composite Index ended with a gain of 10.11 points or 0.05% at 20,561.64, after scaling a low of 20,492.43 and a high of 20,596.18 intraday.

Asian stocks gained on Thursday after the U.S. Federal Reserve reiterated its fight against inflation and Chair Jerome Powell said staff economists at the central bank no longer foresee a recession.

European stocks are notably higher with investors reacting to the Fed's interest rate decision and awaiting the ECB rate announcement. The mood is positive thanks to the Fed downplaying the prospect of a U.S. recession this year.

In commodities, West Texas Intermediate Crude oil futures are up $0.87 or 1.1% at $79.65 a barrel.

Gold futures are up $8.10 or 0.41% at $1,978.20 an ounce, while Silver futures are gaining $0.305 or 1.2% at $25.275 an ounce.