Bay Street Likely To Open On Positive Note

(RTTNews) - Canadian shares look headed for a positive start Wednesday morning thanks to positive global cues. The focus will be the Bank of Canada's interest rate decision.

The Canadian central bank is expected to cut interest rate by a quarter percentage point. The bank's statement about the outlook for the economy and future policy stance is eyed.

The European Central Bank's policy announcement, due on Thursday, and the U.S. jobs data, are also eyed for directional clues.

The Bank of Canada's interest rate decision is due at 10 AM ET.

A report on labor productivity in Canada is due at 8:30 AM ET. At 9:30 AM ET, a report on Canadian manufacturing and services sector activity is due.

The Canadian market ended notably lower on Tuesday, despite regaining a significant portion of lost ground. The benchmark S&P/TSX Composite Index ended with a loss of 138.51 points or 0.63% at 21,978.18, about 150 points off the day's low of 21,828.40.

Asian stocks ended mixed on Wednesday, with Japanese markets leading regional losses as strong wage data spurred expectations of a 2024 Bank of Japan interest rate hike.

Chinese stocks fell notably even as a private survey showed China's services sector in May expanded at its fastest pace since July last year.

Indian markets rebounded after suffering heavy losses in the previous session amid concerns that a smaller majority will see Prime Minister Modi face more difficulty in doling out reforms and infrastructure spending.

European stocks are up firmly in positive territory with investors indulging in some strong buying at several counters ahead of Thursday's ECB meeting and the release of U.S. labor market data on Friday.

The European Central Bank is expected to ease borrowing costs by 25 basis points from the present record levels of 4 percent.

In economic releases, the final reading of the HCOB eurozone composite PMI stood at 52.2 in May, down marginally from the preliminary reading of 52.3 but up from 51.7 in April. That was the highest rate of growth since May 2023 as inflation continued to cool.

Elsewhere, France's industrial output advanced 0.5% on a monthly basis in April, reversing a 0.2% fall in the previous month, data from the statistical office INSEE showed. This was the strongest rise in five months.

In commodities, West Texas Intermediate Crude futures are up $0.29 or 0.4% at $73.54 a barrel.

Gold futures are gaining $6.50 or 0.28% at $2,353.90 an ounce, while Silver futures are up $0.118 or 0.4% at $29.735 an ounce.