Bay Street Looks Set To Extend Upmove

(RTTNews) - Canadian shares look headed for a positive start on Wednesday, riding on some impressive corporate earnings updates, and higher oil prices. The focus will also be on the developments on the trade front.

Suncor Energy reported net earnings of $1,134 million for the second quarter of 2025, compared with net earnings of $1,568 million in the year-ago quarter. Adjusted EPS came in at $0.71 for the latest quarter, compared to $1.27 in the year-ago quarter.

Great West Lifeco reported EPS of $1.24 for the second quarter, up from $1.11 a year ago.

SSR Mining Inc reported net income of $80.4 million for the second quarter of 2025, up sharply compared with net income of $2.46 million in the year-ago quarter.

Shopify Inc. reported second quarter net income of $906 million, up sharply compared to $171 million last year. For the third quarter, the company expects revenue to grow at a mid-to-high twenties percentage rate, and gross profit to grow at a low-twenties percentage rate, both on a year-over-year basis.

On the economic front, a report from S&P Global on manufacturing and services sector activity in the month of July is due at 9:30 AM ET.

Canadian stocks closed sharply higher on Tuesday amid increased investor optimism about a US Fed rate cut sometime sooner than expected earlier.

The benchmark S&P/TSX Composite Index remained firmly positive throughout the day before settling with a gain of 549.65 points or 2.03% at 27,570.08, a fresh closing high.

On Sunday, Canada's federal minister in-charge of US-Canada trade talks stated that he sees a pathway to reduce US tariffs imposed on Canada.

Currently, Canada has been slapped with 35% tariffs on goods not covered under the USMCA, which has naturally rattled the Canadian industries, especially lumber, automobiles, and manufacturing as well as domestic business houses.

As the tariffs are slated to take effect Friday, hectic parleys are underway between US and Canadian high-level trade representatives to find a common path to settle this long-drawn crisis.

Asian stocks closed higher on Wednesday as Fed rate cut hopes prevailed and U.S. President Donald Trump said the United States was close to a trade deal with China.

Trump said the U.S. is getting along with China very well and that he would meet his Chinese counterpart, Xi Jinping, before the end of the year if an agreement is struck.

The major European markets are modestly higher despite Trump's threat that his administration will likely impose tariffs on chips and pharmaceuticals. Investors are mostly reacting to corporate earnings announcements.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.98 or 1.5% at $66.14 a barrel.

Gold futures are down $21.70 or 0.63% at $3,413.00 an ounce, while Silver futures are down $0.108 or 0.29% at $37.715 an ounce.