Bay Street Seen Opening Higher

(RTTNews) - Canadian shares may open higher on Thursday, on strong results from Royal Bank of Canada and higher crude oil prices.

Weak bullion prices, and worries about U.S. tariffs may hurt sentiment and limit market's upside.

Royal Bank of Canada (RY.TO) reported net income of C$5.011 billion or C$3.54 per share for the first quarter, higher than C$3.522 billion or C$2.50 per share in the same quarter a year ago, mainly helped by increase in revenue.

Canadian Imperial Bank of Commerce (CM.TO) reported adjusted net income of $2,179 million, or $2.20 per share, for the first-quarter of 2025, compared to $1,770 million, or $1.81 per share in the year-ago quarter.

Toronto-Dominion Bank (TD.TO) reported adjusted net income of $3632 million, or $2.02 per share, for the first-quarter of fiscal year 2025, compared to $3,637 million, or $2.00 per share, in the year-ago quarer.

On the economic front, data on Canada's current account for the fourth quarter, and average weekly earnings for December are due at 8:30 AM ET.

After a marginally positive start and a subsequent rise to higher levels, the Canadian market pared gains and very nearly slipped into negative territory in late afternoon trades on Wednesday, but recovered swiftly and finally ended the day's session on a firm note.

Fairly good earnings updates, and slightly easing worries about U.S.-Ukraine tensions after the two nations agreed on a minerals deal, helped keep investor sentiment a bit positive.

The benchmark S&P/TSX Composite Index closed up 124.38 points or 0.49% at 25,328.36, gaining for a third straight session. The index scaled a low of 25,208.56 and a high of 25,441.73 intraday.

Asian shares ended mixed on Thursday as U.S. President Donald Trump floated a 25 percent "reciprocal" tariff on European cars and other goods and signaled another month-long extension for looming levies on Canada and Mexico.

U.S. Commerce Secretary Howard Lutnick clarified that the "big transaction" would be April 2, but the "fentanyl-related" tariffs would be re-evaluated at the end of the 30-day pause on March 4, stoking uncertainty.

European stocks are broadly higher, although the German market is notably lower due to a sell-off in the automobile sector.

In commodities, West Texas Intermediate Crude oil futures are up $0.70 or 1.02% at 69.32 a barrel.

Gold futures are down $30.20 or 1.03% at $2,900.40, while Silver futures are lower by $0.167 or 0.52% at $32.105.