Bay Street May Open With Positive Bias; US CPI Data In Focus

(RTTNews) - The Canadian market may open with a positive bias on Thursday, but weak commodity prices could weigh on energy and metal stocks. The focus is on U.S. consumer price inflation data for the month of August.

The consensus estimate shows that the headline CPI likely rose 2.9% from a year earlier in August, the fastest pace since January, while the core measure likely held at 3.1%.

The Labor Department data on Wednesday showed the producer price index for final demand in the U.S. edged down by 0.1% in August after climbing by a downwardly revised 0.7% in July.

The report also said the annual rate of producer price growth slowed to 2.6% in August from a downwardly revised 3.1% in July. Economists had expected the annual rate of producer price growth to remain unchanged compared to the 3.3% surge originally reported for the previous month.

The data added to recent optimism about the Federal Reserve lowering interest rates by at least a quarter point at its monetary policy meeting next week.

In company news, Magna International Inc. (MG.TO) said on Thursday it has appointed Philip D. Fracassa as Chief Financial Officer with immediate effect. He will succeed Patrick McCann, who will step down following a career spanning over 26 years with Magna.

The Canadian market closed modestly higher on Wednesday, lifted by optimism about interest rate cuts by the Bank of Canada and the Federal Reserve next week. Energy and materials stocks turned in a fine performance, contributing to market's firm close.

The benchmark S&P/TSX Composite Index ended with a gain of 116.38 points or 0.4% at 29,179.39, off a new record intraday high of 29,218.25.

Asian stocks ended mixed on Thursday as an unexpected dip by U.S. producer prices fueled hopes of Federal Reserve rate cuts and helped offset rising geopolitical tensions and widespread political turmoil in South Asia.

European stocks are up in positive territory this afternoon. The European Central Bank has left interest rates unchanged as widely expected.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.70 or 1.09% at $62.97 a barrel.

Gold futures are down $25.00 or 0.68% at $3,657.00 an ounce, while Silver futures are down $0.110 or 0.26% at 41.490 an ounce.