Bay Street Likely To Open On Cautious Note; Fed Policy In Focus

(RTTNews) - The Canadian market is likely to open on a cautious note on Wednesday as investors await the Federal Reserve's monetary policy announcement, due later in the day. Energy stocks may gain on higher crude oil prices.

On the Canadian economic front, a report by Markit Economics on Canadian manufacturing activity in the month of October is due at 9:30 AM ET.

The S&P Global Canada Manufacturing PMI fell to 47.5 in September of 2023 from 48 in the previous month, pointing to the fifth consecutive contraction in Canadian factory activity, and at the sharpest pace since the pandemic-driven crash in the second quarter of 2020.

In earnings news, Thomson Reuters (TRI.TO) reported third-quarter operating profit of $441 million, compared to $398 million in the year-ago quarter.

Secure Energy Services Inc (SES.TO) reported third-quarter net income of $47 million, compared to $60 million a year ago.

Canada Goose Holdings Inc. (GOOS.TO) reported second-quarter adjusted net income of $16.2 million, compared with $20.3 million in the year-ago quarter.

SSR Mining Inc. (SSRM.TO) reported third-quarter adjusted net income of US$53.0 million, as against a loss of US$13.5 million in the year-ago quarter.

Canadian stocks closed higher on Tuesday, gaining for a second straight session. In addition to digesting Canadian GDP data and corporate earnings updates, investors awaited the Federal Reserve's monetary policy.

The benchmark S&P/TSX Composite Index ended the session with a marginal gain of 16.71 points or 0.09% at 18,873.47.

Asian stocks ended broadly higher on Wednesday, with Japanese markets leading regional gains after the Bank of Japan loosened its grip on government bond yields.

Middle East worries persisted and Chinese manufacturing data disappointed, helping limit overall gains in the region. Purchasing managers' indexes (PMIs) for China, Japan, South Korea and Australia showed activity shrinking.

European stocks are somewhat subdued around noon, with investors making cautious moves ahead of the Federal Reserve's monetary policy announcement.

In commodities, West Texas Intermediate Crude oil futures are up $1.48 or 1.82% at $82.50 a barrel.

Gold futures are down $2.10 or 0.12% at $1,992.20 an ounce, while Silver futures are lower by $0.182 or 0.79% at $22.770 an ounce.