Bay Street Likely To Open On Cautious Note

(RTTNews) - Canadian shares are likely to open on a cautious note on Tuesday, tracking mixed commodities, and weak European markets.

With the focus on the Bank of Canada's interest rate decision, due on Wednesday, the market is likely to move in a somewhat tight range.

Data on Canada's trade balance for the month of October is due at 8:30 AM ET. Canada's trade surplus rose to CAD 1.1 billion in September of 2022, from a downwardly revised surplus of CAD 0.6 billion in the previous month

The Ivey PMI reading for November is due out at 10 AM ET. Canada's Ivey Purchasing Managers Index fell for the third consecutive month to 50.1 in October of 2022 from 59.5 in the previous month.

The Canadian market ended notably lower on Monday, weighed down by concerns about more aggressive policy moves by the Fed after data showed an unexpected acceleration in U.S. services sector activity in the month of November.

Already, recent strong U.S. jobs data had triggered speculation the central bank will continue with its aggressive rate hike.

The benchmark S&P/TSX Composite Index ended down 243.40 points or 1.19% at 20,242.26.

Asian stocks finished Tuesday's trading on a mixed note, with benchmarks in Hong Kong, South Korea, Australia and New Zealand closing lower amidst anxiety over the Fed's stance given a strong service activity reading. A rate hike by the Reserve Bank of Australia added to the negative sentiment.

European stocks are down in negative territory on Tuesday with investors largely staying cautious amid renewed concerns the Federal Reserve will continue with its aggressive interest rate hikes after recent upbeat jobs data and services sector activity report.

In commodities, West Texas Intermediate Crude oil futures are down $1.05 or 1.37% at $75.88 a barrel.

Gold futures are gaining $10.00 or 0.56% at $1,791.30 an ounce, while Silver futures are up $0.213 or 0.95% at $22.625 an ounce.