Bay Street Likely To See Positive Start

(RTTNews) - Higher crude oil prices and firm European markets indicate a positive start for the Canadian market on Wednesday.

Worries about slowing growth might weigh on stocks and limit their upside. The focus will be on the minutes from the Federal Reserve's latest monetary policy meeting.

With no economic or corporate news to provide any real direction, activity in the market is likely to remain somewhat subdued at times.

Despite staging a fairly good recovery after a sharp plunge, the Canadian market ended on a very weak note on Tuesday, as fears about a possible recession and looming interest rate hikes weighed on sentiment and rendered the mood very cautious.

Sharply lower crude oil prices took a toll of energy stocks. Stocks from the materials sector tumbled as well as bullion prices fell after the dollar surged higher.

The benchmark S&P/TSX Composite Index, which tanked to 18,520.38, losing more than 500 points, ended the session with a loss of 194.70 points or 1.02% at 18,834.16.

Asian stocks ended broadly lower on Wednesday as recession worries took center stage and investors awaited an update from the FOMC meeting minutes due later in the day.

Chinese shares fell sharply as another wave of COVID infections across Shanghai raised the specter of another lockdown. The benchmark Shanghai Composite index drifted down 1.43%.

Hong Kong's Hang Seng tumbled 1.22%, while Japan's Nikkei dropped 1.2%.

European stocks are up firmly in positive territory Wednesday afternoon after suffering sharp losses in the previous session on recession fears. Bargain hunting at several counters is contributing to the rise in stock prices.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.81 or 0.81% at $100.31 a barrel.

Gold futures are down marginally at $1,762.50, while Silver futures are gaining $0.099 or 0.5% at $19.220 an ounce.