Bay Street Likely To Open On Subdued Note

(RTTNews) - Canadian shares are likely to see a somewhat muted start on Wednesday, tracking slight weakness in European markets and lower commodity prices. Activity may remain a bit stock specific with quarterly earnings updates providing direction.

Investors are looking ahead to Fed Chair Jerome Powell's opening remarks at the Federal Reserve Division of Research and Statistics Centennial Conference for clues about the central bank's policy stance.

In earnings news, ATS Corp. (ATS, ATS.TO) reported that its second quarter net income increased to C$50.7 million from C$29.5 million, a year ago. Earnings per share was C$0.51 compared to C$0.32. Adjusted basic earnings per share was C$0.63 compared to C$0.51. Adjusted EBITDA was C$116.2 million, 29.4% higher from a year ago.

CGI (GIB) reported fourth quarter net earnings of C$414.5 million, up 14.4% compared with the same period last year. Earnings per share were C$1.76 compared to C$1.51 last year, an increase of 16.6%. Net earnings excluding specific items was C$421.2 million, up 12.9%. EPS excluding specific items was C$1.79, up 14.7%.

TC Energy (TRP.TO) reported third-quarter net loss of $0.2 billion or $0.19 per common share compared to net income of $0.8 billion or $0.84 per common share in third quarter 2022.

Hydro One Ltd. (H.TO) reported third-quarter net income of $357 million, compared with $307 million in the year-ago quarter.

On the economic front, data on Canadian building permits for the month of September is due at 8:30 AM ET.

The total value of building permits in Canada rose by 3.4% from a month earlier to $11.9 billion in August, up from an upwardly revised 3.8% drop in July.

The Canadian market ended weak on Tuesday as falling commodity prices triggered heavy selling in energy and materials sectors. Data showing a bigger than expected drop in China's exports, and weak economic reports from the eurozone and U.K. raised concerns about the outlook for global energy demand.

The benchmark S&P/TSX Composite Index ended down 168.35 points or 0.85% at 19,575.59.

Asian stocks ended mostly lower on Wednesday as investors digested hawkish comments from some Fed officials on the future rate hike path and looked ahead to Fed Chair Jerome Powell's speech for direction.

European stocks are turning in a mixed performance with investors digesting a slew of earnings updates from the region and awaiting Fed Chair Powell's speech for directional clues on U.S. central bank's interest-rate path.

In commodities, West Texas Intermediate Crude oil futures are down $0.61 or 0.79% at $76.76 a barrel.

Gold futures are down $2.80 or 0.14% at $1,970.70 an ounce, while Silver futures are lower by $0.084 or 0.37% at $22.505 an ounce.