Bay Street Likely To Open With Negative Bias; Higher Oil Prices May Push Up Energy Stocks
(RTTNews) - Canadian shares may open with a negative bias Wednesday morning on worries about rising tensions in the Middle East, but higher oil prices might trigger buying in the energy space and limit market's downside.
With no economic data from the U.S. and Canada due today, investors are likely to refrain from making significant moves.
The Canadian market ended marginally up on Tuesday, riding on strong gains in the energy sector as oil prices rose sharply following an escalation in tensions in the Middle East after Iran launched a missile attack on Israel.
The benchmark S&P/TSX Composite Index, which dropped to 23,875.68 after a slightly weak start, ended the session with a garein of 33.62 points or 0.14% at 24,033.99.
Asian stocks ended mostly lower on Wednesday, even as Hong Kong shares continued to surge on stimulus euphoria. The mood was cautious following Tehran's sharp but brief strike in reprisal for Israel's attacks on Lebanon in recent days.
European stocks are turning in a mixed performance, with energy stocks leading the surge as oil extended an overnight rally on concerns that Middle East tensions could escalate and potentially disrupt crude output from the region.
In economic news, Eurozone's unemployment rate came in unchanged at 6.4% in August, matching expectations.
In commodities, West Texas Intermediate Crude oil futures are up $2.20 or about 3.15% at $72.03 a barrel.
Gold futures are down $18.10 or 0.67% at $2,672.20 an ounce, while Silver futures are lower by $0.017 or 0.05% at $31.725 an ounce.
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