Bay Street Looks Headed For Positive Start

(RTTNews) - Higher U.S. and Canadian futures, firm crude oil prices, and positive European markets are pointing to a higher start for Canadian shares on Thursday.

The focus is on Canadian GDP data and U.S. Personal Income & Expenditure report. Investors will be reacting to earnings updates from major Canadian banks as well.

Canadian GDP data for the third-quarter is due at 8:30 AM ET. Average weekly earnings for September is also due at 8:30 AM ET.

Canadian GDP stalled in the second quarter of 2023, missing forecasts for a 0.3% expansion. On an annualized basis, Canada's GDP contracted by 0.2% in the second quarter.

Royal Bank of Canada (RY.TO) reported fourth-quarter earnings of C$4.062 billion, or C$2.90 per share, compared to C$3.809 million, or C$2.74 per share, in the corresponding quarter of the previous year.

Toronto-Dominion Bank (TD.TO) reported adjusted net income of $3.505 million, or $1.83 per share in the fourth quarter, compared with $4.065 million, or $2.18 per share in the previous year's fourth quarter.

Canadian Imperial Bank of Commerce (CM.TO) reported adjusted net income of $1,520 million, or $1.53 per share, for the fourth quarter, compared with $1,308 million, or $1.26 million a year ago.

BRP Inc. (DOO.TO) reported that its third quarter net income decreased to C$63.1 million from C$141.6 million, prior year. Earnings per share was C$0.81 compared to C$1.76. The company said the decrease was primarily due to a lower operating income, an unfavourable foreign exchange rate variation on the U.S. denominated long-term debt and an increase in financing costs.

The S&P/TSX Composite Index fluctuated over the course of the session but maintained a positive bias before closing up 79.43 points or 0.4 percent at 20,166.20.

Financial stocks led the upward move on the day, with the S&P/TSX Capped Financial Index climbing by 1.2 percent.

Asian stocks closed higher on Thursday amids dovish comments by Fed officials that markets see as heralding an earlier-than-expected rate cut by the Fed. Hopes of Chinese stimulus, and easing inflation in Europe contributed as well to the uptick in the markets.

European stocks are up in positive territory, buoyed by data showing a smaller than expected increase in Euro Area consumer prices in November. Preliminary data from Eurostat showed eurozone inflation came in at 2.4% on an annual basis in November, lower than the 2.7% increase expected by analysts.

In commodities, West Texas Intermediate Crude oil futures are up $0.58 or about 0.75% at $78.44 a barrel.

Gold futures are down $9.00 or 0.44% at $2,058.10 an ounce, while Silver futures are down marginally at $25.435 an ounce.