Bay Street Likely To Open Lower

(RTTNews) - Canadian shares are likely to open lower on Tuesday, tracking weak Asian and European markets and lower commodity prices.

Data on Canada inflation for the month of August is due at 8:30 AM ET.

The U.S. Federal Reserve, the Bank of England, the People's Bank of China, the Bank of Japan, and the Swiss National Bank, are all scheduled to announce their interest rate decisions this week.

Canada's annual inflation rate came in at 7.6% in July of 2022, easing from the 39-year high of 8.1% hit in the prior month and in line with market estimates. The Consumer Price Index in Canada increased 0.1% in July of 2022 over the previous month.

Core consumer prices in Canada increased 6.1% in July of 2022 over the same month in the previous year. Core consumer prices in Canada increased to 148.50 points in July from 147.80 points in June of 2022.

The ended on a firm note on Monday, riding on gains in materials, technology and consumer discretionary shares. The benchmark S&P/TSX Composite Index ended with a gain of 176.50 points or 0.91% at 19,562.38, after having dropped to 19,198.11 in early trades.

Asian stocks recovered from recent losses on Tuesday, thanks to a rebound in the final hour of New York trading overnight. The upside, however, remain capped by lingering uncertainty over the quantum of U.S. Fed policy rate hike.

The Federal Reserve begins a two-day meeting later today, with a jumbo rate hike of 75-100 bps on cards after hotter-than-expected U.S. inflation data last week.

European stocks are down in negative territory after Sweden's central bank hiked interest rates by a full percentage point to 1.75% in a surprise move and data showed German producer prices rose in August at their strongest rate since records began both in annual and monthly terms.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.19 or 0.22% at $85.54 a barrel.

Gold futures are down $1.70 or 0.1% at $1,676.50 an ounce, while Silver futures are lower by $0.068 or 0.33% at $19.295 an ounce.