Bay Street May Open On Slightly Positive Note; BoC Rate Decision In Focus

(RTTNews) - Canadian shares look headed for a positive start Wednesday morning, ahead of the Bank of Canada's interest rate decision.

The Canadian central bank is widely expected to leave interest rate unchanged.

Investors are also awaiting news on Trump administration's proposed "Liberation Day" tariffs that will take effect early next month.

The hike in tariffs on steel and aluminum imported into U.S. could weigh on sentiment and limit market's upside.

Descartes Systems, North West Company and Transcontinental Inc. are slated to announced their quarterly earnings today.

On the economic front, data on Canadian labor productivity, the S&P Global Composite PMI reading and Services PMI reading are due this morning.

On Tuesday, Canadian stocks recovered from early weakness to end modestly higher, extending the upward move seen in the previous session. The benchmark S&P/TSX Composite Index inched up 37.68 points or 0.1% 26,426.64, reaching another new record closing high.

Concerns about global economy after the Organization for Economic Co-operation and Development lowered its global growth forecast for 2025 to 2.9% from 3.1% weighed early on in the session.

The Paris-based firm said the outlook across the globe has become challenging due to rising trade barriers and policy uncertainty, which is weighing on consumer confidence and blocking investments.

Asian stocks advanced on Wednesday after new data showed the U.S. labor market is holding up in the face of tariff uncertainty.

An unexpected increase in U.S. job openings buoyed sentiment as the OECD warned uncertainty is stifling investment and confidence.

On the trade front, U.S. President Donald Trump today described Chinese President Xi Jinping as "extremely hard" to strike a deal with, even as the White House reiterated that the two leaders would talk "very soon."

European shares are up in positive territory as investors expect a 25-basis point rate cut from the European Central Bank when it meets on Thursday. Markets are also digesting some crucial regional economic data.

In commodities trading, West Texas Intermediate crude oil futures are down slightly at $63.39 a barrel.

Gold futures are gaining $5.20 or 0.15% at $3,382.30 an ounce, while Silver futures are up $0.047 or 0.14% at $34.680 an ounce.