Bay Street Likely To Open On Positive Note

(RTTNews) - The Canadian market is likely to open on a firm note Wednesday morning, riding on rising crude oil and bullion prices. Stronger than expected Chinese economic growth in the third quarter may also aid sentiment.

Escalating tensions in the Middle East may weigh on the market and limit its upside. According to reports, a deadly missile attack on Al-Ahli Baptist Hospital in Gaza killed more than 500 people including women and children.

Hamas attributed the blast to an Israeli airstrike, but the Israeli military said it was not involved and the explosion was caused by a misfired Palestinian rocket.

In corporate news, CGI Inc (GIB.A.TO) announced that its subsidiary CGI Federal has received a multi-year contract worth about $522.6 million to modernize systems and technology of the U.S. Environmental Protection Agency.

On the economic front, data on Canadian housing starts for the month of September is due at 8:15 AM ET.

The Canadian market closed modestly higher on Tuesday, lifted by gains in materials, healthcare and consumer discretionary sectors.

Data showing a drop in Canadian inflation helped underpin sentiment. Concerns about U.S. interest rates, and slowing global economic growth weighed on stocks and limited market's upside.

The benchmark S&P/TSX Composite Index, which dropped to 19,552.24, recovered to 19,768.64 and eventually settled at 19,692.80, gaining 72 points or 0.37%.

Asian stocks cut early losses to end mixed on Wednesday after a slew of Chinese data topped forecasts. The undertone remained cautious somewhat after a deadly missile attack on Al-Ahli Baptist Hospital in Gaza killed several hundred people, including women and children.

European stocks are down firmly in negative territory with fears over an escalation in the Middle East conflict outweighing somewhat improved economic data from China.

In commodities, West Texas Intermediate Crude oil futures are up $2.40 or 2.78% at $89.06 a barrel.

Gold futures are rising $23.90 or 1.23% at $1,959.60 an ounce, while Silver futures are up $0.371 or 1.61% at $23.395 an ounce.