Bay Street Likely To Open On Positive Note

(RTTNews) - Canadian shares look headed for a positive start Thursday morning, tracking higher bullion prices, and dovish comments from the Federal Reserve.

Investors will also be reacting to quarterly earnings updates.

BCE Inc (BCE.TO) reported fourth-quarter net earnings of $567 million, down 13.8% from net earnings of $658 million from a year ago.

Rogers Communications Inc. (RCI.A.TO) reported adjusted net income of $554 million for the quarter ended December 31, 2022, compared with adjusted net income of $486 million in the corresponding quarter of the previous year.

Lightspeed Commerce Inc. (LSPD.TO) reported adjusted net loss of $814.8 million for the quarter ended December 2022, compared with adjusted net loss of $65.5 million in the corresponding quarter of the previous financial year. Net loss includes a non-cash goodwill impairment charge of $748.7 million .

On the economic front, data on Canadian building permits for the month of December is due at 8:30 AM ET.

After a weak start and a subsequent fall to lower levels, the Canadian market staged a recovery and briefly emerged into positive territory in late afternoon trades on Wednesday, before closing slightly weak.

Investors digested a 25-basis point interest rate hike by the Federal Reserve and noted Fed Chief Jerome Powell's comments. The Fed said it anticipates ongoing increases in interest rates will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.

The benchmark S&P/TSX Composite Index ended lower by 16.33 points or 0.08% at 20,751.05, well off the day's low of 20,579.49.

Asian shares edged higher on Thursday after the U.S. Federal Reserve said that "disinflationary process has started" but "ongoing increases" in rates will be needed to curb price pressures.

Fed Chair Jerome Powell's dovish comments in a press conference stoked expectation that the Fed might start cutting rates before 2024.

European stocks are up in positive territory in early afternoon trades on Thursday with investors digesting the Federal Reserve's policy decision, and the Bank of England's interest rate hike announcement.

The BoE today raised its benchmark rate for the tenth straight session, citing stronger-than-expected wage pressure and risks of greater persistence in underlying inflaiton. The bankk raised its interest rate by 50 basis points to 4%, the highest since 2008.

The Europen Central Bank is scheduled to announce its interest rate decision at 8:15 AM ET.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.42 or 0.55% at $76.59 a barrel.

Gold futures are gaining $26.70 or 1.37% at $1,969.50 an ounce, while Silver futures are up $0.941 or 3.95% at $24.550 an ounce.