Bay Street Looks Headed For Positive Start

(RTTNews) - Canadian shares look headed for a positive start on Wednesday, tracking gains in Asian and European markets, and firm bullion prices.

Investors will also be reacting to quarterly earnings updates from Canadian companies, including Royal Bank of Canada and National Bank of Canada.

On the economic front, data on Canadian manufacturing activity for the month of February is due at 9:30 AM ET. The S&P Global Canada Manufacturing PMI rose to 51 in January 2022 from 49.2 in the previous month, as the manufacturing sector returned to growth, underpinned by gains in both production and new orders.

In earnings news, Royal Bank of Canada (RY.TO) today reported net income of $3.2 billion for the quarter ended January 31, 2023, down $881 million or 22% from the prior year. Diluted EPS was $2.29 , down 19% over the same period.

National Bank of Canada (NA.TO) reported a net income of $881 million for the first quarter of 2023, down 5% from $930 million in the first quarter of 2022.

George Weston Limited (WN.TO) reported adjusted net earnings from continuing operations of $369 million for the fourth quarter of 2022, an increase of $22 million, or 6.3%, from a year ago.

Canadian stocks moved slightly lower during trading on Tuesday, giving back ground after moving modestly higher over the two previous sessions.

The benchmark S&P/TSX Composite Index climbed off its worst levels of the day but still closed down 38.94 points or 0.2 percent to 20,221.19.

The modest pullback on the day partly reflected ongoing concerns about the outlook for U.S. interest rates ahead of the release of some key economic data in the coming days.

Asian stocks ended higher on Wednesday as strong manufacturing data from China helped offset investor concerns over stubborn inflation and fears of further U.S. interest-rate hikes.

European stocks are up firmly in positive territory Wednesday afternoon, as upbeat manufacturing and non-manufacturing data from China help offset investor concerns over inflation and fears of further U.S. interest-rate hikes.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.59 or 0.77% at $76.46 a barrel.

Gold futures are gaining $10.50 or 0.6% at $1,847.20 an ounce, while Silver futures are up $0.164 or 0.78% at $21.235 an ounce.