Bay Street May Open Higher; Inflation Data In Focus

(RTTNews) - Higher bullion prices point to a positive start for Canadian stocks on Tuesday. However, Canadian inflation data, due before the opening bell, is likely to set the trend.

Data on Canadian inflation for the month of June is due at 8:30 AM ET. The annual inflation in Canada rose to 2.9% in May, from a three-year low of 2.7% in April. Month-over-month, Canada's consumer price index increased 0.6% in May, following a 0.5% rise in April.

Canada's core inflation rate accelerated to 1.8% annually in May, from April's 1.6%. Core inflation rate rose 0.6% from a month earlier in May, following a 0.2% increase in April.

Housing starts in Canada decreased to 241,700 units in June from 264,900 units in May, a report from the Canada Mortgage & Housing Corporation showed.

Barrick Gold Corporation (ABX.TO) said it produced 948 thousand ounces of gold in the second quarter, less than 1.009 million ounces produced in the same quarter a year ago. Barrick Gold produced 43 thousand tonnes and sold 42 thousand tonnes of copper in the second quarter compared with 107 million pounds and 101 million pounds respectively in the previous-year quarter.

Looking ahead, Barrick Gold said it remains on track to achieve its full-year gold and copper guidance.

The Canadian market moved on to a new all-time high on Monday, extending gains to a fourth straight session, thanks to gains in energy sector. Optimism about an interest rate cut by the Federal Reserve in September continued to aid sentiment.

The benchmark S&P/TSX Composite Index, which scaled a new intra-day high, rising to 22,818.42, settled with a gain of 78.16 points or 0.34% at 22,751.68, a new closing high.

Asian stocks ended mixed on Tuesday despite strength on Wall Street overnight. Investors weighed the case for a September rate cut after comments by Fed Chair Jerome Powell that the three inflation readings over the second quarter of this year showed "more progress."

With the odds for a Trump presidency increasing, markets also grappled with the concept of the "Trump Trade," which implies deregulation, tax cuts, and increased fiscal spending.

European stocks are down in negative territory amid concerns about the outlook for euro area's economic growth, after analysts warned that the region's GDP could be impacted if Donald Trump were to win the presidential election in November. Weak German investor sentiment data is weighing as well.

In commodities, West Texas Intermediate Crude oil futures are down $1.52 or 1.85% at $80.39 a barrel.

Gold futures are gaining $15.30 or 0.63% at $2,444.20 an ounce, while Silver futures are up $0.119 or 0.38% at $31.055 an ounce.