Bay Street Likely To Open With Slightly Negative Bias

(RTTNews) - Canadian shares are likely to open with a slightly negative bias Thursday morning amid rising uncertainty over U.S. interest rate trajectory, and renewed geopolitical tensions. Energy stocks may move up on firm crude oil prices and help limit market's downside.

Once again, activity may remain stock specific with investors reacting to a slew of quarterly earnings announcement.

In earnings news, Telus Corporation (T.TO) reported adjusted net earnings of $390 million for the first-quarter of 2024, up 1.0% from $386 million in the year-ago quarter.

Canadian Tire Corporation (CTC.TO) reported first-quarter net income of C$96.0 million, compared to C$42.8 million a year ago.

Quebecor Inc (QBR.TO) reported adjusted income from operating activities of $163.1 million ($0.71 per basic share) for the first quarter of 2024, an increase of $27.1 million ($0.12 per basic share) or 19.9%.

Telus International (TIXT.TO) reported first-quarter net income of $140 million, down 37.5% from a net income of $224 million the company posted in the year-ago quarter.

After five successive days of gains, the Canadian market ended marginally down on Wednesday, recovering well after an early tumble thanks to some strong buying at select counters post mid afternoon.

The benchmark S&P/TSX Composite Index, which fell nearly 250 points to 22,048.94, recovered to settle at 22,259.16, down just 31.46 points or 0.14%.

Asian stocks ended mostly lower on Thursday due to geopolitical tensions and uncertainty over Fed rate cuts, even as Chinese and Hong Kong markets advanced on the back of strong trade data.

European stocks are slightly higher even as the mood remains cautious amid Middle East tensions, and deepening uncertainty over Fed rate cuts.

The Bank of England has maintained its key policy rate for the sixth consecutive meeting today, with the Monetary Policy Committee deciding to hold the Bank Rate at 5.25% again in a split vote. The current bank rate is the highest since early 2008.

While seven members judged that maintaining the rate at the current level was warranted, Swati Dhingra and Dave Ramsden sought a quarter-point reduction at the meeting.

Dhingra and Ramsden said the Bank Rate needed to become less restrictive to enable a smooth and gradual transition in the policy stance, and to account for lags in transmission.

"The MPC remained prepared to adjust monetary policy as warranted by economic data to return inflation to the 2% target sustainably," the bank said.

In commodities, West Texas Intermediate Crude oil futures are up $0.57 or 0.72% at $79.56 a barrel.

Gold futures are down $1.40 or 0.05% at $2,320.30 an ounce, while Silver futures are gaining $0.329 or 1.19% at $27.930 an ounce.