Bay Street Likely To Open Higher On Firm Oil Prices

(RTTNews) - The Canadian market may open higher on Wednesday with energy stocks finding support on firm crude oil prices. The overall mood is likely to remain cautious as investors await more economic data amid persisting worries about inflation and interest rates.

Shopify Inc. (SHOP.TO) announced today that it is investing in wholesale platform Faire, in a global deal that would see the start-up adopt Shopify technology for its clients. Faire, which is valued at $12.59 billion, would become the recommended wholesale marketplace for Shopify merchants.

Valeo Pharma Inc. (VPH.TO) said Wednesday that it has agreed to a 5 million Canadian-dollar ($3.7 million) credit facility with Accord Financial. The pharmaceutical company said that the new money will provide additional financial liquidity and increased flexibility as it pursues its long-tern growth plans.

Following the uptick seen in the previous session, Canadian stocks showed a substantial move back to the downside during trading on Tuesday.

The benchmark S&P/TSX Composite Index plunged 244.46 points or 1.2 percent to 19,556.15, tumbling to its lowest closing level in three months.

The sharp pullback on Bay Street came amid ongoing concerns about the outlook for U.S. interest rates, with JPMorgan Chase (JPM) CEO Jamie Dimon warning in an interview with The Times of India that rates could go as high as 7 percent.

"I am not sure if the world is prepared for 7%," Dimon said. "I ask people in business, 'Are you prepared for something like 7%?' The worst case is 7% with stagflation."

Asian stocks ended mixed on Wednesday as investors grappled with the impact of higher interest rates on growth. Profits at China's industrial firms in August posted a surprise surge of 17.2% from a year earlier, pointing to signs of economic recovery in the world's second-largest economy.

After recovering from a weak start and trading higher for a while, European stocks pared gains and are currently down in negative territory amid concerns about interest rates and the health of the global economy.

In commodities, West Texas Intermediate Crude oil futures are up $1.45 or 1.6% at $91.84 a barrel.

Gold futures are down $8.80 or 0.47% at $1,911.00 an ounce, while Silver futures are lower by $0.161 or 0.7% at $23.035 an ounce.