Bay Street Likely To Open With Negative Bias; Inflation Data In Focus

(RTTNews) - Sharply lower crude oil prices and subdued bullion point to a weak opening for Canadian stocks Tuesday morning. However, Canadian inflation data, due before the opening bell, is likely to set the trend for the market.

Worries about geopolitical tensions have eased somewhat, with Wagner Chief Yevgeny Prigozhin saying that his intention was not to dethrone the Putin government.

Data on Canadian inflation for the month of May is due at 8:30 AM ET.

The annual inflation rate in Canada rose to 4.4% in April of 2023, rising from the 19-month low of 4.3% in the previous month. On a monthly basis, the Canadian CPI advanced by 0.7%, the most in six months.

Core consumer prices in Canada increased 4.1% in April of 2023 over the same month in the previous year. On a monthly basis, core inflation decreased to 0.5% in April from 0.6% a month earlier.

In corporate news, Thomson Reuters (TRI.TO) announced it will acquire Casetext, a legal startup with an artificial intelligence-powered assistant for law professionals, in a $650-million all-cash deal.

Despite lingering concerns about monetary tightening and economic slowdown, the Canadian market ended notably higher on Monday. The benchmark S&P/TSX Composite Index ended with a strong gain of 169.09 points or 0.87% at 19,587.32.

Asian stocks ended mixed on Tuesday as geopolitical concerns surrounding Russia eased somewhat and China's premier said growth is accelerating in the world's second-largest economy.

European stocks have pared early gains and are slightly weak, weighed down by comments from European Central Bank President Christine Lagarde who said inflation still remains high, and the bank is committed to attain the 2% inflation target.

Without any material change to the euro area outlook, the bank will continue to increase rates in July, Lagarde reiterated.

In commodities, West Texas Intermediate Crude oil futures are down $1.39 or about 2% at $67.98 a barrel.

Gold futures are down $2.60 or 0.13% at $1,931.20 an ounce, while Silver futures are up $0.084 or 0.37% at $22.910 an ounce.