Bay Street Seen Opening With Positive Bias

(RTTNews) - Canadian shares may open with a positive bias Tuesday morning, reacting to the nation's inflation data, and higher gold prices. However, with the Fed minutes due on Wednesday and Fed Chair Jerome Powell's speech due on Friday, the mood is likely to remain a bit cautious.

Data from Statistics Canada showed Canada's inflation rate dropped to 2.5% in July from 2.7% a month earlier. The CPI rose 0.4% in July over the previous month.

Core consumer prices in Canada increased by 1.7% in July compared to the same month in the previous year, easing from 1.9% in June.

In corporate news, the Boards of Gran Tierra Energy (GTE.TO) and i3 Energy Plc (ITE.TO) have reached agreement on the terms of a recommended and final cash and share offer by Gran Tierra for i3 Energy pursuant to which Gran Tierra will acquire the entire issued and to be issued share capital of i3 Energy.

According to the terms of agreement, each i3 Energy shareholder will be entitled to receive: one New Gran Tierra share per every 207 i3 Energy shares held; and 10.43 pence cash per i3 Energy share. Also, each i3 Energy shareholder will be entitled to receive: a cash dividend of 0.2565 pence per i3 Energy share in lieu of the ordinary dividend in respect of the three month period ending 30 September 2024.

Sleep Country Canada Holdings (ZZZ.TO) announced late on Monday that it received an advance ruling under the Competition Act, paving the way for Fairfax Financial FFH to complete its acquisition of the sleep products retailer for $35 cash per share.

The Canadian market posted a fresh record closing high on Monday, extending its winning streak to an eighth straight session.

The Canadian benchmark ended with a gain of 61.78 points or 0.72% at 23,116.39, slightly higher than the record closing it set on July 31st. The index climbed to a high of 23,192.49 around mid morning, before paring some gains.

Asian stocks turned in a mixed performance on Tuesday despite dovish Fed expectations and signs of easing Middle East tensions.

European stocks are slightly lower in cautious trade as investors digest Eurozone inflation estimate and the Riskbank's interest rate move, and await Fed minutes and Fed Chair Jerome Powell's speech due later in the week.

In commodities, West Texas Intermediate Crude oil futures are down marginally at $74.33 a barrel.

Gold futures are gaining $23.70 or 0.93% at $2,565.00 an ounce, while Silver futures are gaining $0.566 or 1.93% at $29.870 an ounce.