Bay Street Looks Headed For Another Weak Start

(RTTNews) - Canadian shares may open on a weak note Wednesday morning with investors tracking weak global cues and awaiting the Canadian central bank's interest rate decision.

Asian markets closed weak today and European stocks are notably lower, weighed down by continued contraction in U.S. manufacturing sector activity. Survey results showing that growth in China's services sector activity slowed in August weigh as well.

The Bank of Canada (BoC) is scheduled to announce its monetary policy at 9:45 AM ET. The central bank is expected to announce another quarter percentage point cut in interest rate.

Canada's trade data for the month of July is due at 8:30 AM ET. Canada recorded a trade surplus of C$ 0.64 billion in June, the first surplus since February, following an upwardly revised deficit of C$ 1.61 billion in May.

The Canadian market ended sharply lower on Tuesday, weighed down by losses in energy, materials and technology sectors. Weak commodity prices, and concerns about global economic growth and uncertainty about the pace of U.S. interest rate cuts rendered the mood bearish.

The benchmark S&P/TSX Composite Index, which fell to a low of 22,976.55, losing nearly 370 points in the process, ended with a loss of 303.73 points or 1.3% at 23,042.45.

Asian stocks slumped on Wednesday after weak U.S. manufacturing data triggered heavy selling in chip-related stocks overnight.

European stocks are firmly down in negative territory amid concerns about weakening U.S. and Chinese growth.

In commodities, West Texas Intermediate Crude oil futures are up $0.61 or 0.87% at $70.95 a barrel.

Gold futures are down $3.40 or 0.13% at $2,519.60 an ounce, while Silver futures are gaining $0.031 or 0.11% at $28.375 an ounce.