Bay Street Likely To Open Higher; Fed Policy Eyed

(RTTNews) - Canadian shares look in headed for a positive start Wednesday morning, tracking higher oil and bullion prices, and firm European stocks. Investors now await the Federal Reserve's monetary policy announcement due later in the day, for clues about an interest rate cut in September.

Data from Statistics Canada showed Canada's GDP remained unchanged at 0.1% in June

CGI Inc. (GIB.A.TO) reported third-quarter net earnings of $440.1 million, up 6.1% year-over-year.

Fortis Inc. (FTS.TO) reported second quarter net earnings of $331 million or $0.67 per common share, up from $294 million or $0.61 per common share in the year-ago quarter.

Endeavour Mining Inc. (EDV.TO) reported a net loss of $60 million for the second quarter of the current financial year, compared to a net loss of $20 million in the year-ago quarter.

The Canadian market ended modestly higher on Tuesday after a somewhat volatile session, as investors awaited the Federal Reserve's monetary policy announcement on Wednesday, and some crucial economic data from the U.S. and Canada for directional cues.

The benchmark S&P/TSX Composite Index ended up 45.10 points or 0.2% at 22,824.67, after scaling a low of 22,775.46 and a high of 22,900.38 intraday.

Asian stocks climbed on Wednesday, while the yen turned volatile after the Bank of Japan lifted short-term policy rates and announced plans to reduce monthly bond buying in a hawkish pivot.

Meanwhile, weak manufacturing data from China added to bets that Beijing will deploy more stimulus measures in the world's second largest economy.

Investors also assessed mixed earnings results from Microsoft and chipmaker AMD and looked ahead to a Federal Reserve announcement for greater clarity regarding when the U.S. central bank will begin cutting interest rates.

European stocks advanced on Wednesday, with China stimulus hopes and encouraging earnings boosting investor sentiment ahead of the Federal Reserve's interest-rate decision later in the day.

A measure of China's manufacturing activity slipped to a five-month nadir in July, fueling expectations for more Chinese stimulus.

Meanwhile, headline annual inflation in the euro zone unexpectedly rose to 2.6 percent in July from 2.5 percent in June, according to Eurostat's flash estimate.

In commodities, West Texas Intermediate crude oil futures are up $2.63 or 3.52% at $77.36 a barrel.

Gold futures are gaining $11.80 or 0.48% at $2,463.70 an ounce, while Silver futures are up $0.350 or 1.23% at $28.875 an ounce.