Bay Street Likely To Open Mixed; Inflation Data In Focus

(RTTNews) - Canadian shares look headed for a mixed start on Tuesday if commodity prices are any indication. Crude oil prices are climbing higher, while bullion prices are weak.

However, investors are likely to react to the consumer price inflation data, due at 8:30 AM ET. The data is likely to show inflation dropped to an annual rate of 6.4% in December.

Canada's annual inflation rate was 6.8% in November of 2022, down slightly from the 6.9% reading in the prior month.

Core inflation rate in Canada held steady at 5.8% in November, the same as in October.

Data on Canadian housing starts for the month of December is also due at 8:30 AM ET. Housing starts edged down 0.2% in November from a month earlier.

Earnings updates from Goldman Sachs and Morgan Stanley are also likely to impact the mood in the market.

The Canadian stock market ended marginally up after moving in a tight range on Monday, extending gains to a seventh straight session. Healthcare, consumer staples and technology stocks were among the notable gainers.

Easing concerns about interest rates after last week's inflation data from the Labor Department showed consumer prices in the U.S. continued to support the market. Data on Canadian consumer prices for the month of December is due on Tuesday.

The benchmark S&P/TSX Composite Index, which opened slightly down at 20,324.38 but climbed to a high of 20,435.11 around late morning, ended the session with a gain of 30.23 points or 0.15% at 20,390.33, the highest closing level in nearly 7 weeks.

Asian stocks turned in a mixed performance on Tuesday as China growth data beat forecasts and caution prevailed ahead of a Bank of Japan policy meeting.

Chinese shares ended slightly lower as data showed GDP grew an annual 3 percent in 2022 despite various growth pressures.

European stocks are down slighty in cautious trade with investors digesting weak GDP data from China and reacting to earnings updates from Goldman Sachs and Morgan Stanley.

In commodities trading, West Texas Intermediate Crude oil futures for February are up $0.57 or 0.71% at $80.43 a barrel.

Gold futures are down $10.30 or 0.54% at $1,911.40 an ounce, while Silver futures are lower by $0.192 or 0.79% at $24.180 an ounce.