Bay Street Likely To Open On Mixed Note; BoC, Fed Policy Announcement In Focus

(RTTNews) - Somewhat subdued U.S. and Canadian futures, and mixed commodity prices point to a mixed start for Canadian stocks on Wednesday. The focus will be on the monetary policy announcements from the Bank of Canada and the Federal Reserve.

Investors will also be following the developments on the trade front.

The Canadian central bank is widely expected to hold its policy rate unchanged this morning. The Fed, which is scheduled to announce its rate decision later in the day, is also expected to leave the interest rate unchanged. The accompanying statement from the Fed is in focus for clues about the central bank's future moves with regard to rates.

Investors will also be reacting to a slew of Canadian earnings announcements.

Intact Financial Corporation reported earnings per share of $5.23 for the second-quarter, compared with $4.86 per share a year ago.

Precision Drilling posted earnings per share of $0.61 in the second quarter of this fiscal, down from $1.44 in the year-ago quarter.

Agnico Eagle Mines, CGI, Tourmaline Oil Corporation, Ivanhoe Mines and Alamos Gold are slated to announce their second-quarter earnings today.

The Canadian market closed higher on Tuesday as investors were optimistic of a Canada-US deal sooner or later despite the apparent disinterest displayed by the US President on the progress of negotiations.

The benchmark S&P/TSX Composite Index ended the day's session with a gain of 134.46 points or about 0.49% at 27,539.88.

Asian stocks ended mixed in cautious trade on Wednesday as caution prevailed ahead of big U.S. tech earnings, the Fed and BoJ rate decisions, and the August 1 tariff deadline. Upcoming U.S. inflation and jobs data also remained on investors' radar.

U.S. and Chinese officials concluded two days of talks in Stockholm, but there was no agreement on tariff truce extension. U.S. officials said President Trump will decide whether to extend truce.

European stocks are turning in a mixed performance today with investors largely reacting to corporate earnings updates, and some regional economic data.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.32 or 0.52% at $68.89 a barrel.

Gold futures are gaining $5.20 or 0.17% at $3,329.20 an ounce, while Silver futures are down $0.106 or 0.28% at $38.180 an ounce.