Bay Street Likely To Open On Mixed Note

(RTTNews) - Canadian shares are likely to open on a mixed note on Wednesday, tracking sluggish commodity prices and slightly higher U.S. futures.

Worries about economic slowdown and another sharp interest rate hike by the Fed next week might weigh on stocks.

In Canadian earnings news, BRP Inc. (DOO.TO) reported that its second-quarter normalized earnings per share increased to C$2.94 from C$2.89, prior year. Normalized EBITDA increased 0.8%, to C$418.3 million.

BRP Inc. now expects full-year normalized EPS upward by C$0.30, now ranging from C$11.30 to C$11.65. The company anticipates that its third-quarter normalized EPS could be up over 50% year-over-year.

On the economic front, final data on manufacturing sales for the month of July is due at 8:30 AM ET. Preliminary data showed that manufacturing sales in Canada likely fell 0.9% month-over-month in July of 2022, following a 0.8% drop in June.

After a four-day winning streak, the Canadian market ended sharply lower on Tuesday as hotter-than-expected U.S. inflation data triggered heavy selling at several counters from across various sectors. The benchmark S&P/TSX Composite Index ended with a loss of 341.83 points or 1.71% at 19,645.40.

Asian stocks fell on Wednesday and the yen's continued depreciation prompted the Bank of Japan to conduct an operation often seen as a precursor to currency intervention, as investors shunned riskier assets amid increasing uncertainty about the global economic outlook.

European stocks are down firmly in negative territory Thursday afternoon amid concerns about economic slowdown and looming interest rate hikes.

In commodities trading, West Texas Intermediate Crude oil futures for October are down marginally at $87.26 a barrel.

Gold futures are down $3.10 or 0.17% at $1,714.50 an ounce, while Silver futures are down $0.11 or 0.06% at $19.480 an ounce.