Bay Street Seen Opening Weak; BoC Rate Decision In Focus

RTTNews | 34 days ago

(RTTNews) - Lower stock futures and commodity prices point to a weak start for the Canadian market on Wednesday. The focus will be on the Canadian central bank's interest rate decision due after the opening bell.

The Bank of Canada is scheduled to announce its monetary policy at 9:45 AM ET. The central bank is widely expected to reduce interest rates by 50 basis points.

In earnings news, Whitecap Resources (WCP.TO) reported third-quarter net profit of $274.2 million, or $0.46 per share, compared with $152.7 million, or $0.25 per share in the year-ago quarter.

The Canadian market recovered from an early setback and ended flat on Tuesday. The mood was cautious with investors awaiting the Canadian central bank's interest rate decision on Wednesday.

The benchmark S&P/TSX Composite Index ended down 6.63 points or 0.03% at 24,716.70. The index, which dropped to 24,565.21 in early trades, briefly moved into positive territory, rising to 24,724.53 in the closing minutes.

Asian stocks ended mixed on Wednesday and the U.S. dollar index surpassed 104 mark, tracking elevated U.S. treasury yields amid easing expectations of aggressive Federal Reserve rate cuts and fears the U.S. may be heading toward fiscal collapse.

Gold reached a new record high while oil prices fell after industry data showed U.S. crude inventories swelled more than expected.

Chinese shares eked out modest gains after reports emerged that the government may deploy as much as 2 trillion yuan (US$280 billion) to establish a stock market stabilization fund.

European stocks are down in negative territory with investors digesting and awaiting the upcoming U.K. autumn budget. The dollar is on the rise again and U.S. Treasury yields hover near three-month highs as traders ponder the prospect of a Donald Trump presidency.

It is feared that Trump policies including tariffs and restrictions on undocumented immigration could increase inflation and keep interest rates relatively high for a longer-than-anticipated period.

In commodities, West Texas Intermediate Crude oil futures are down $1.19 or 1.66% at $70.55 a barrel.

Gold futures are down $1.90 or 0.07% at $2,757.90 an ounce, while Silver futures are lower by $0.371 or 1.06% at $34.670 an ounce.

Fed Officials Favor Gradual Interest Rate Cuts, Minutes Show

Federal Reserve officials believe it will be appropriate to "gradually" lower interest rates, according to the minutes of the central bank's latest monetary policy meeting. The minutes said officials feel a gradual approach to lowering rates to a more neutral stance will be appropriate if economic data come in "about as expected."

RTTNews | 5h 13min ago

Japanese Yen Advances Amid Concerns About Trump's Tariff Threats

The Japanese yen strengthened against other major currencies in the New York session on Tuesday, as U.S. President-elect Donald Trump pledged to impose tariffs on all imports from Mexico, Canada and China on his first day in office, raising fears of a renewed trade war.

RTTNews | 5h 41min ago

Swiss Market Ends On Weak Note

After early weakness, the Switzerland market briefly moved above the flat line around mid afternoon on Tuesday, but retreated soon and finally ended the day's session with a moderate loss. The mood was a bit bearish after U.S. President-elect Donald Trump stated on social media that he would impose tariffs on all imports from Mexico, Canada and Chin

RTTNews | 6h 19min ago

European Stocks Close Lower As Trade War Fears Resurface

European stocks closed weak on Tuesday as trade war fears resurfaced after U.S. President-elect Donald Trump pledged to impose tariffs on all imports from Mexico, Canada and China immediately after taking office in January 2025.

RTTNews | 6h 42min ago

U.S. Consumer Confidence Continues To Improve In November

After reporting a significant rebound by U.S. consumer confidence in the previous month, the Conference Board released a report on Tuesday showing consumer confidence continued to improve in November. The Conference Board said its consumer confidence index rose to 111.7 in November after surging to an upwardly revised 109.6 in October.

RTTNews | 9h 9min ago

U.S. New Home Sales Pull Back Much More Than Expected In October

A report released by the Commerce Department on Tuesday showed a substantial pullback by new home sales in the U.S. in the month of October. The Commerce Department said new home sales saw a 17.3 percent nosedive to an annual rate of 610,000 in October after spiking by 7.0 percent to a rate of 738,000 in September. Economists had expected new home sales to decrease to a rate of 730,000.

RTTNews | 9h 12min ago

Intel To Get $7.865 Bln Govt. Grant For US Semiconductor Projects

The U.S. government has offered Intel Corp. up to $7.865 billion in direct funding for its commercial semiconductor manufacturing projects, which is expected to create thousands of jobs. The latest award, together with a 25% investment tax credit which the firm plans to claim, would support the chip maker's plans to invest more than $100 billion in the U.S.

RTTNews | 10h 21min ago

Bay Street Likely To Open Higher On Firm Commodities, But Trade War Fears May Weigh

It's likely to be a positive start for Canadian stocks on Tuesday as higher crude oil and gold prices are likely to trigger some buying in energy and metal sectors. However, fears of a renewed trade war following U.S. President-elect Donald Trump pledging to impose tariffs on all imports from Mexico, Canada and China, may hurt sentiment and limit market's upside.

RTTNews | 11h 54min ago

EURUSD	1.04648	GBPUSD	1.25362	AUDUSD	0.64527
USDJPY	153.291	USDCAD	1.40736	USDCHF	0.88813