Bay Street Looks Headed For Another Positive Start

(RTTNews) - Canadian shares are set to open on a firm note on Tuesday, extending gains from the previous session, as markets in Asia closed higher, and most of the markets across Europe are up sharply amid hopes global central banks will pause rate hikes during the later part of the year.

Data on Canada's trade balance for the month of August is due at 8:30 AM ET. A report on Canadian building permits for the month of August is also due around the same time.

Canada posted a trade surplus of C$ 4.1 billion in July of 2022, narrowing from a downwardly revised surplus of C$ 4.9 billion in the previous month.

Exports from Canada dropped by 2.8% over a month to C$ 68.3 billion in July of 2022, following six consecutive monthly increases, while imports to Canada fell 1.8% over a month to C$ 64.2 billion in July of 2022.

The Canadian market ended on a buoyant note on Monday, led by gains in energy, industrials, technology and materials sectors. Stocks rallied due largely to hectic bargain hunting in stocks that had seen heavy battering in recent sessions.

The benchmark S&P/TSX Composite Index, which climbed to 18,966.90, ended with a gain of 436.97 points or 2.37% at 18,881.19.

Asian shares ended higher on Tuesday amid hopes for a dovish pivot from the U.S. Federal Reserve. The Bank of England is the first to pivot back to quantitative easing, claiming to restore market functioning and reduce risks of contagion.

Sentiment was also boosted after the British government made a dramatic U-turn on one of the tax cuts that contributed to extreme bond market turmoil last week.

European stocks are up sharply, extending gains from the previous session, as weak U.S. manufacturing and construction data released overnight raised hopes for slower Federal Reserve tightening. The dollar's slide and the bond yields' fall have also helped lift investor sentiment.

In commodities trading, West Texas Intermediate Crude oil futures for November are up $0.47 or 0.56% at 84.10 a barrel.

Gold futures are rising $7.80 or 0.46% at $1,709.80 an ounce, while Silver futures are gaining $0.251 or 1.22% at $20.840 an ounce.