Bay Street May Open Higher; Fed Policy Announcement In Focus

(RTTNews) - Canadian shares may open higher Thursday morning, tracking largely positive European stocks, but weak commodity prices could weigh on energy and materials sectors and limit market's upside. The focus will be on the Federal Reserve's policy announcement later in the day.

The Fed is widely expected to cut interest rate by 25 basis points. Investors will pay close attention to Fed Chair Jerome Powell's comments on the policy outlook after Trump's victory.

Investors will also be reacting to a slew of corporate earnings announcements.

Boralex Inc. (BLX_A.TO), a Canadian renewable energy company, and Saint-Gobain (CODGF.PK), a French construction materials maker, announced on Thursday that they have signed a 20-year renewable electricity purchase deal in France.

TC Energy Corporation (TRP.TO) reported a net income of $1.5 billion or $1.40 per common share for the third quarter of this year, compared to net loss of $0.2 billion or $0.19 per common share, in third quarter of the previous year.

BCE Inc. (BCE.TO) reported adjusted net earnings of $688 million for the third-quarter of the current financial year, compared with $741 million in the year-ago period.

Hydro One Limited (H.TO) reported third quarter basic earnings per share of $0.62 compares to $0.60 for the same period in 2023.

Bombardier Inc. (BBD.B.TO) reported revenues of $2.1 billion in the third quarter of 2024, an increase of 12% year-over-year.

Canadian Tire Corporation (CTC.TO) reported a net income of $220.7 million for the third quarter of this year, compared with a net loss of $27.8 millin in the year-ago quarter.

Primo Water Corporation (PRMW.TO) reported third-quarter net income of $38 million, compared with net income of $34 million a year ago.

Algonquin Power & Utilities Corp (AQN.TO) reported adjusted net earnings of $64.9 million for the third quarter, down 5% from a year ago.

The Canadian market closed on a buoyant note on Wednesday, lifted by strong gains in technology, energy and financials sectors. The benchmark S&P/TSX Composite Index closed with a gain of 249.55 points or 1.02% at 24,637.45, just a few points off the day's high.

Asian stocks ended mixed on Thursday as upbeat Chinese trade data offset concerns over the impact of Trump's policies on international trade, immigration and other key issues.

The dollar saw a modest pullback in Asian trading, oil prices fluctuated, and gold recovered some ground after falling sharply in the previous session as focus shifted to interest rate decisions from the Bank of England and the Federal Reserve due later in the day.

European stocks are mostly up on Thursday with investors digesting the Bank of England's decision to lower interest rates, and awaiting the Federal Reserve's rate decision.

The BoE reduced its benchmark rate for the second time this year citing continued progress in disinflation. BoE's Monetary Policy Committee decided to lower the rate by 25 basis points to 4.75%. The outcome of the two-day meeting matched expectations.

In commodities, West Texas Intermediate Crude oil futures are down $0.74 or 1.03% at $70.95 a barrel.

Gold futures are down $1.70 or 0.06% at $2,674.60 an ounce, while Silver futures are lower by $0.041 or 0.13% at $31.290 an ounce.