Bay Street Likely To Open Weak

(RTTNews) - Lower Canadian and U.S. futures, and weakness in European markets, following the downward revision in U.S. credit ratings point to a weak start for the Canadian market on Wednesday.

Higher oil and bullion prices might trigger modest buying in energy and materials sections, but the mood is likely to remain cautious due to growth worries. Investors will be reacting to a slew of earnings updates from Canadian companies.

Investors also await the Bank of England's interest rate announcement on Thursday and the U.S. non-farm payrolls report due to be published on Friday for directional cues.

Thomson Reuters Corporation (TRI.TO) reported diluted EPS of $3.49 for the second quarter of the current financial year, compared to $1.83 per share in the prior-year period primarily due to higher operating profit and an increase in the current period in the value of the company's investment in LSEG.

Fortis Inc (FTS.TO) reported second-quarter net earnings of $294 million or $0.61 per common share, up from $284 million or $0.59 per common share in the year-ago quarter.

Colliers International Group Inc (CIGI.TO) reported GAAP operating earnings were $75.3 million in the second quarter, compared to $103.9 million in the prior year quarter.

The Canadian market ended lower on Tuesday as healthcare, materials and utilities shares fell on selling pressure.

The benchmark S&P/TSX Composite Index, which fell to 20,468.68 intraday, ended the session with a loss of 93.71 points or 0.45% at 20,532.93.

Asian stocks ended lower on Wednesday after various surveys showed factory activity around the world took a further turn for the worse in July.

Investors also fretted over the state of U.S. finances and its debt burden after Fitch downgraded the U.S. government's credit rating from AAA to AA+, citing fiscal deterioration and repeated debt ceiling standoffs.

European stocks are firmly down in negative territory Wednesday afternoon, following Fitch downgrading the U.S. government's credit rating from AAA to AA+, citing fiscal deterioration and repeated debt ceiling standoffs.

The rating agency said that during the last 20 years, there has been a decline in the standard of governance in America, the effect of which is visible in fiscal and debt decisions.

In commodities, West Texas Intermediate crude oil futures are up $0.61 or 0.75% at $81.98 a barrel.

Gold futures are up $5.00 or 0.25% at $1,983.30 an ounce, while Silver futures are gaining $0.139, or 0.57% at $24.465 an ounce.